Mentor Graphics enters new $125 million revolver to replace old loan

By Jennifer Chiou

New York, April 27 - Mentor Graphics Corp. entered into a new up to $125 million revolving credit facility and, in turn, terminated its prior $100 million unsecured credit agreement with Bank of America, NA and KeyBank NA on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The old revolver was set to mature in June while the new loan comes due on April 27, 2015.

Borrowings will bear interest at Libor plus 225 basis points to 325 bps based on leverage.

The new revolver has covenants that include the maintenance of specified liquidity ratios, leverage ratios and minimum tangible net worth.

Wilsonville, Ore.-based Mentor Graphics provides software used in electronic design.

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