Cadence Design Systems, Inc. Enters into $700 Million Five-Year Senior Unsecured Revolving Credit Facility
July 01, 2021 at 05:19 pm EDT
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On June 30, 2021, Cadence Design Systems, Inc. entered into a $700 million five-year senior unsecured revolving credit facility (the “Facility”) pursuant to a credit agreement (the “Credit Agreement”) with Bank of America, N.A., as a lender and administrative agent, and other lender parties thereto. The Credit Agreement provides that, under certain circumstances, Cadence may increase the aggregate principal amount of revolving commitments by up to $350 million, for a total up to $1.050 billion. Concurrently with entering into the Credit Agreement, Cadence terminated its existing Credit Agreement, dated as of January 30, 2017 (the “Prior Credit Agreement”) among Cadence, JPMorgan Chase Bank, N.A., as a lender and administrative agent, and other lender parties thereto. Proceeds from the Facility will be used for general corporate purposes. Amounts outstanding under the Credit Agreement initially accrue interest at a rate equal to, at Cadence’s option, either (1) LIBOR plus a margin of between 0.750% and 1.250%, determined by reference to the rating of Cadence’s unsecured debt, or (2) base rate plus a margin of 0.000% to 0.250%, determined by reference to the rating of Cadence’s unsecured debt. Additionally, Cadence will pay commitment fees on the undrawn amount of the revolving commitments at a rate between 0.07% and 0.175%, determined by reference to the rating of Cadence’s unsecured debt.
Cadence Design Systems, Inc. is No. 1 worldwide in developing and marketing design software for integrated circuits and electronic systems. Net sales break down by activity as follows:
- sale of licenses (93.8%): design software, integrated circuit verification, simulation, and performance control systems, etc. In addition, the group offers maintenance services;
- services (6.2%): consulting, training, system design and development, technical assistance, etc.
Net sales are distributed geographically as follows: the United States (41.4%), Americas (1.6%), China (16.6%), Japan (5.6%), Asia (18.8%) and Europe/Middle East/Africa (16 %).