21 Oct, 2021

Synaptics wraps $600M term loan for M&A tight to talk; terms

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By Jonathan Hemingway

Investors have received allocations of Synaptics Inc.'s $600 million, seven-year first-lien term loan that priced tight to talk at L+225, with a 0.50% Libor floor and an issue price of 99.75 via a Barclays-led arranger group, according to sources. In addition, there is a 25-basis-point margin step-down at 1x inside opening total gross leverage. Proceeds will be used to finance the acquisition of DSP Group Inc. Synaptics develops and supplies custom-designed human interface semiconductor products for use in mobile computing, communications, entertainment and other electronics devices.

Terms:

Borrower Synaptics Inc.
Issue $600 million first-lien term loan
UoP M&A
Spread L+225
Libor floor 0.50%
Price 99.75
Tenor 7-year
YTM 2.82%
Four-year yield 2.85%
Call protection 101 soft call for 6 months
Corporate ratings BB-/Ba2/BB
Facility ratings BB-/Ba1/BBB-
Recovery ratings 3/1
Financial covenants None
Arrangers Barc/WF/MUFG/BMO
Admin agent WF
Px Talk L+250/0.5%/99-99.5
Sponsor Public
Notes Margin step-down of 25 bps at 1x inside opening total gross leverage.