Cadence Design Systems, Inc. entered into a $700 million two-year senior unsecured term loan credit facility pursuant to a loan agreement with Bank of America, N.A., as a lender and administrative agent, the other lenders party thereto and BofA Securities, Inc., JPMorgan Chase Bank, N.A. and HSBC Bank USA, National Association, as joint lead arrangers and joint bookrunners. All of the proceeds from the Facility were used to finance the Company?s previously announced acquisition of BETA CAE Systems International AG, a Swiss company limited by shares (together with its subsidiaries, ?BETA CAE?). Amounts outstanding under the Loan Agreement will accrue interest at a rate equal to, at the Company?s option, either (1) Term SOFR (as defined in the Loan Agreement) plus a margin of between 0.875% per annum and 1.375% per annum depending on the Company?s debt rating, plus a credit spread adjustment of 0.10%, or (2) base rate plus a margin of between 0.0% per annum and 0.375% per annum depending on the Company?s debt rating.

The covenants of the Loan Agreement include customary negative covenants that, among other things, restrict the Company?s ability to incur additional indebtedness, grant liens and make certain asset dispositions. In addition, the Loan Agreement contains a financial covenant that requires the Company to maintain a funded debt to Consolidated EBITDA (as defined in the Loan Agreement) ratio not greater than 3.25 to 1, with a step-up to 3.75 to 1 for one year following an acquisition by the Company of at least $250 million that results in a pro forma leverage ratio between 3.00 to 1 and 3.50 to 1. The foregoing description is qualified in its entirety by reference to the Loan Agreement, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.