Synaptics embarks on non-deal roadshow

Synaptics banker Wells Fargo is setting up investor presentations as part of a refinancing effort for the technology company, according to two sources familiar with the situation.  

A deal will likely launch after the company’s 5 November quarterly earnings release, they said. Proceeds from the deal could pre-fund the takeout of a 2022 convertible note and repay revolver borrowings, they added. 

Synaptics, a developer of human interface hardware and software such as fingerprint and voice technology, had USD 100m drawn on its USD 200m revolver as of 27 June. At the time, liquidity totaled USD 823.4m through USD 763.4m of cash and roughly USD 100m of revolver availability.  

For fiscal year 2020, the company’s net revenue totaled USD 1.3bn, while non-GAAP net income shook out to USD 207.2m.  

The company guided to USD 315m-USD 335m of revenue for fiscal 1Q21, ended 30 September, at the time of its previous earnings report. That compares to USD 339.9min the prior-year period.  

Synaptics’ USD 525m 0.5% convertible notes due 2022 last traded today at 125.509, down from trades at 129.5 on 13 October, according to MarketAxess. Shares traded today at USD 81.12 per share and a market cap of USD 2.78bn, up 2.71% from yesterday’s close.  

Synaptics and Wells Fargo did not respond to requests for comment.

2020 Debtwire

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