Synaptics to sell overnight $450 million five-year convertible at 0.25%-0.75% yield, up 32.5%-37.5%

By Rebecca Melvin

New York, June 20 – Synaptics Inc. launched an overnight deal late Tuesday of $450 million of five-year convertible notes talked to yield 0.25% to 0.75% with an initial conversion premium of 32.5% to 37.5%, according to a syndicate source.

Wells Fargo Securities LLC is the bookrunner of the Rule 144A offering, which has a $50 million greenshoe.

The offering is slated to price ahead of the market open on Wednesday.

The senior unsecured notes will be non-callable for three years.

Proceeds will be used to pay off about $123.8 million outstanding under a term loan facility, to buy back up to $100 million of its common stock under a current stock repurchase program and to partially fund the cash portion of previously announced acquisitions of Conexant Systems LLC and the Multimedia Solutions Business of Marvell Technology Group.

Based in San Jose, Calif., Synaptics makes touchpads and other interface parts for computers.

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