Cadence Design Systems has entered into a new $1.25 billion five-year senior unsecured revolving credit facility on August 14, 2024. The facility is arranged through Bank of America, N.A., JPMorgan Chase Bank, N.A., and HSBC Bank USA, replacing the company's existing credit agreement from June 2021. The proceeds will be used for working capital, capital expenditures, and general corporate purposes.The credit agreement includes interest rate options of either Term SOFR plus a margin of 0.625% to 1.125% with a 0.10% credit spread adjustment, or base rate plus a margin of 0% to 0.125%, both depending on the company's debt rating. The agreement requires Cadence to maintain a funded debt to Consolidated EBITDA ratio not exceeding 3.50:1, with potential increase to 4.00:1 for one year following...Show More

Cadence Design Systems has entered into a new $1.25 billion five-year senior unsecured revolving credit facility on August 14, 2024. The facility is arranged through Bank of America, N.A., JPMorgan Chase Bank, N.A., and HSBC Bank USA, replacing the company's existing credit agreement from June 2021. The proceeds will be used for working capital, capital expenditures, and general corporate purposes.The credit agreement includes interest rate options of either Term SOFR plus a margin of 0.625% to 1.125% with a 0.10% credit spread adjustment, or base rate plus a margin of 0% to 0.125%, both depending on the company's debt rating. The agreement requires Cadence to maintain a funded debt to Consolidated EBITDA ratio not exceeding 3.50:1, with potential increase to 4.00:1 for one year following qualifying acquisitions.Concurrent with the new facility, Cadence has amended its existing loan agreements from September 2022 and May 2024 to align their financial covenants with the new credit agreement's terms. The company has also terminated all remaining commitments under the previous credit agreement, with no outstanding borrowings at the time of termination.