SYNCHRONOSS CLOSES US$235 MILLION COMMON STOCK, SENIOR NOTES OFFERINGS

KUALA LUMPUR, July 1 (Bernama) -- Synchronoss Technologies Inc has announced that on June 29, it closed an underwritten public offering of 42,307,692 shares of common stock, which included 3,846,154 shares issued in connection with the underwriters’ option to purchase additional shares, at a price to the public of US$2.60 per share, for gross proceeds of approximately US$110 million. (US$1 = RM4.155)

The Company also announced that on June 30, it closed an underwritten public offering of US$125 million aggregate principal amount of 8.375 per cent senior notes due 2026, which included US$5 million aggregate principal amount of senior notes issued in connection with the underwriters’ option to purchase senior notes.

Gross proceeds for both offerings are exclusive of underwriting discounts and commissions and estimated offering expenses payable by the Company, a global leader and innovator of cloud, messaging and digital solutions.

Synchronoss and the senior notes both received a rating of BB- from Egan-Jones Ratings Company, an independent, unaffiliated rating agency. The notes are expected to begin trading on the Nasdaq Global Select Market under the symbol ‘SNCRL’ as early as July 1.

In addition to the public offerings, on June 30, the Company closed a private placement of 75,000 shares of its Series B Perpetual Non-Convertible Preferred Stock to B. Riley Principal Investments LLC for an aggregate purchase price of US$75 million.

The two public offerings and the private placement resulted in net proceeds of approximately US$300 million after deducting underwriting discounts and commissions, but before expenses.

On June 30, the Company used the net proceeds in part to fully redeem all outstanding shares of its Series A Convertible Participating Perpetual Preferred Stock owned by an affiliate of Siris Capital Group and to repay amounts outstanding under the Company’s revolving credit facility.

The refinancing has also led to the departure of Synchronoss Board of Directors members Frank Baker, Peter Berger and Robert Aquilina, each of whom is associated with Siris Capital Group, according to a statement.

In conjunction with this new capitalisation, B. Riley Financial Inc, including certain of its affiliates, serves as Synchronoss’ anchor investor. Synchronoss has granted B. Riley representation on its Board.

The common stock and senior notes were offered under the Company’s shelf registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission (SEC) on Aug 28, 2020.

More details at www.synchronoss.com.

-- BERNAMA