Ansys refinances with new $1.26 billion credit facility

By William Gullotti

Buffalo, N.Y., July 6 – Ansys, Inc. entered into a new $755 million term loan and a new $500 million revolver on June 30, according to an 8-K filing with the Securities and Exchange Commission.

The new facility, scheduled to mature June 30, 2027, refinances and replaces the company’s two credit agreements dated Feb. 22, 2019 and Nov. 9, 2020.

Facility borrowings will bear interest at SOFR, Euribor, Sonia, Tonar or Saron plus a margin ranging from 87.5 basis points to 150 bps.

The commitment fee will range from 10 bps to 20 bps, with fees for letters of credit ranging from 87.5 bps to 150 bps.

Fees and margins are determined by the company’s consolidated leverage ratio.

The revolver has a $150 million sublimit for alternative currencies, with $50 million sublimits for letters of credit and swingline loans.

The new agreement also contains a financial covenant that requires the company and its subsidiaries to maintain consolidated leverage ratios of less than 3.5 to 1.0, with an opportunity for a temporary increase to 4.0 to 1.0 for certain qualified acquisitions in excess of $250 million.

After closing and in consultation with the sustainability agent and administrative agent, the company is able to amend the agreement for the purpose of incorporating either key performance indicators (KPIs) with respect to certain environmental, social and governance (ESG) targets or external ESG ratings targets. If the amendment becomes effective as-is, sustainability adjustments may increase or decrease the applicable margins by 5 bps and the facility by 1 bps.

At closing, Ansys repaid and terminated all outstanding obligations under the prior agreements. Proceeds from the new facility will be used for working capital and general corporate purposes.

PNC Bank, NA is the administrative agent, swingline lender and LoC issuer.

PNC Capital Markets LLC is the sustainability structuring agent, also serving as a joint lead arranger and joint bookrunner with BofA Securities, Inc., Citibank, NA and JPMorgan Chase Bank, NA.

Bank of America, NA, Citibank and JPMorgan are the co-syndication agents.

Wells Fargo Bank, NA and First National Bank of Pennsylvania are the co-documentation agents.

Based in Canonsburg, Pa., Ansys develops and markets engineering simulation software.

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