Synchronoss unveils US$100 million public offering of common stock pricing

KUALA LUMPUR, June 28 -- Synchronoss Technologies Inc (Synchronoss), a global leader and innovator in cloud, messaging and digital products and platforms, recently announced the pricing of an underwritten public offering of 38,461,538 shares of its common stock at a public offering price of US$2.60 per share. (US$1 = RM4.148)

The gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses payable by Synchronoss, are expected to be US$100 million, according to a statement.

In addition, Synchronoss has granted the underwriters a 30-day option to purchase up to 3,846,154 additional shares of common stock at the public offering price, less the underwriting discounts and commissions.

All shares in the offering are being sold by Synchronoss.

Synchronoss anticipates using the net proceeds from the offering, and from the offering of Senior Notes and sale of Series B Preferred Stock, to fully redeem all outstanding shares of Synchronoss’ Series A Convertible Participating Perpetual Preferred Stock and repay amounts outstanding under Synchronoss’ revolving credit facility.

The offering is expected to close on or about June 29, subject to satisfaction of customary closing conditions.

B. Riley Securities Inc (BRS) is acting as lead underwriter and sole book-running manager for the offering. Northland Capital Markets is acting as co-manager for the offering.

Concurrently with the offering, the Company is offering, by means of a separate prospectus supplement, US$120 million aggregate principal amount of senior notes due 2026 (the Senior Notes).

In addition, B. Riley Principal Investments LLC (BRPI), an affiliate of BRS, has entered into an agreement pursuant to which BRPI has agreed to purchase US$75.0 million of the Company’s Series B Preferred Stock in a private transaction to be completed concurrently with the closing of the offering.

The shares of common stock described above are being offered by Synchronoss pursuant to a shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (SEC) and declared effective by the SEC on Aug 28, 2020.

-- BERNAMA