Item 1.01 Entry into a Material Definitive Agreement.

On May 19, 2020, Avid Technology, Inc. (the "Company"), its subsidiary, Avid Technology Worldwide, Inc. ("Avid Worldwide"), Cerberus Business Finance, LLC, as collateral and administrative agent, and the lenders party thereto entered into a seventh amendment (the "Seventh Amendment") to their existing agreement, dated February 26, 2016, as amended (the "Financing Agreement"), between the Company, Avid Worldwide, Cerberus Business Finance, LLC, as collateral and administrative agent, and the lenders party thereto.

The Seventh Amendment modifies the covenant requiring the Company to maintain a Leverage Ratio (defined in the Financing Agreement to mean the ratio of (a) Consolidated Funded Indebtedness to (b) Consolidated EBITDA) such that following the effective date of the Seventh Amendment, the Company is required to maintain a Leverage Ratio of no greater than 6.00:1.00 for each of the quarters ending June 30, 2020 and September 30, 2020, 5.75:1.00 for each of the quarters ending December 31, 2020 and March 31, 2021, 5.25:1.00 for the quarter ending June 30, 2021, 5.00:1.00 for the quarter ending September 30, 2021, 4.50:1.00 for the quarter ending December 31, 2021, 4.30:1.00 for the quarter ending March 31, 2022, 4.00:1.00 for each of the quarters ending June 30, 2022 and September 30, 2022, and 3.75:1.00 for each of the quarters ending December 31, 2022 and March 31, 2023. In addition, the Seventh Amendment removes the requirement for the Company to maintain a lower Leverage Ratio if the Company had less than $60 million in unrestricted cash and available borrowing capacity under the revolving credit facility. The Seventh Amendment also resets the prepayment premium to 1.5% of the principal amount of the loans prepaid through the end of 2020, 0.5% of the principal amount of the loans prepaid through the end of 2021, and 0.0% thereafter.

Additionally, under the terms of the Seventh Amendment, interest accrues on outstanding borrowings at a rate of either the LIBOR Rate (as defined in the Financing Agreement) plus 6.75% or a Reference Rate (as defined in the Financing Agreement) plus 5.75%, at the option of the Company. Prior to the effective date of the Seventh Amendment, the applicable margin with respect to the LIBOR Rate was 6.25% and the applicable margin with respect to the Reference Rate was 5.25%.

The foregoing description is qualified in its entirety by reference to the Seventh Amendment, which is attached hereto as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The disclosure required by this Item 2.03 is included in Item 1.01 above and is incorporated herein by reference.



Item 9.01  Financial Statements and Exhibits.

(d)          Exhibits.
Exhibit
Number       Description
               Amendment No. 7 to Financing Agreement, dated February 26, 2016,
10.1         among Avid Technology, Inc. and the Lenders named therein.

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