Ansys gets $375 million term loan to acquire Analytical Graphics

By Cady Vishniac

Detroit, Nov. 12 – Ansys, Inc. entered into a new $375 million term loan on Monday to finance its acquisition of Analytical Graphics, Inc., according to an 8-K filing with the Securities and Exchange Commission.

The term loan will be funded in full upon the closing of the acquisition and will mature Nov. 1, 2024.

The interest rate is one-month Libor plus 100 basis points. Borrowing levels will be adjusted based on the company’s current consolidated leverage ratio and ratings.

The loan also contains a covenant requiring that Ansys and its subsidiaries’ consolidated leverage ratio not exceed 3.5x at the end of any fiscal quarter, with a temporary increase to 4x allowed for qualified acquisitions for with an aggregate consideration of at least $250 million.

Principal on the term loan will be payable on the last business day of each fiscal quarter starting with the fiscal quarter ending March 31, 2022 a at a rate of 5% per year, increasing to 10% per year with the fiscal quarter ending March 31, 2023.

BofA Securities, Inc. is the sole lead arranger and sole bookrunner.

Bank of America, NA is the administrative agent. JPMorgan Chase Bank, NA and PNC Bank, NA are the co-syndication agents.

Based in Canonsburg, Pa., Ansys develops and markets engineering simulation software. Analytical Graphics is an Exton, Pa.-based provider of software for aerospace, defense, telecommunication and intelligence applications that is being acquired by Ansys for $700 million, 67% in cash and 33% in Ansys common stock.

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