By Kenneth Lim
Boston, May 7 - Synnex Corp. priced an upsized $125 million offering of 10-year convertible senior notes after the market close on Tuesday at the cheap end of talk to yield 4% with an initial conversion premium of 35%.
The convertibles were offered at par. Price talk was for a coupon of 3.5% to 4% and an initial conversion premium of 35% to 40%.
The size of the deal was originally $100 million. The over-allotment option was increased to an additional $18.75 million from $15 million.
Banc of America Securities LLC and UBS Investment Bank are the bookrunners of the Rule 144A offering.
The notes are non-callable for the first five years and may be put in the fifth year.
There is a contingent conversion hurdle at 130% of the conversion price, and a contingent payment hurdle at 120% of the principal.
The notes have dividend and takeover protection.
Synnex, a Fremont, Calif.-based business process services company, said it will use the proceeds for general corporate purposes and to reduce outstanding balances under certain credit arrangements.
| Issuer: | Synnex Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Banc of America Securities LLC and UBS Investment Bank
|
| Amount: | $125 million, increased from $100 million
|
| Greenshoe: | $18.75 million, increased from $15 million
|
| Maturity: | May 15, 2018
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 35%
|
| Conversion price: | $29.42
|
| Conversion ratio: | 33.9945
|
| Contingent conversion: | 130%
|
| Contingent payment: | 120%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before May 20, 2013
|
| Puts: | May 15, 2013
|
| Price talk: | 3.5%-4%, up 35%-40%
|
| Pricing date: | May 6, after the close
|
| Settlement date: | May 12
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: SNX
|
| Stock price: | $21.79 at close May 6
|
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