Synopsys gets five-year $800 million restated revolver, term loan

By Marisa Wong

Morgantown, W.Va., Nov. 30 – Synopsys, Inc. entered into an amended and restated credit agreement on Monday for a $650 million senior revolving credit facility and a $150 million senior term loan facility, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The credit agreement amends and restates Synopsys’ previous credit agreement dated May 19, 2015, which had provided for a $500 million senior revolver and a $150 million senior term loan.

Synopsys’ outstanding borrowings under the previous credit agreement, which as of Oct. 31 consisted of revolving loans totaling $205 million, are carried over under the new credit agreement.

In addition to increasing the size of the revolver, the restated credit agreement extends the termination date to Nov. 28, 2021 from May 19, 2020.

The term loan amortizes in quarterly installments with the balance due at maturity on Nov. 28, 2021.

Loans under the amended credit agreement may be increased by up to an additional $150 million.

Interest will accrue on the revolving loans at Libor plus an applicable margin ranging from 100 basis points to 117.5 bps, depending on the company’s total leverage ratio. The company is also required to pay a facility fee ranging from 12.5 bps to 20 bps, again based on the total leverage ratio. The applicable margin is initially 117.5 bps, and the facility fee is initially 20 bps.

Interest will accrue on the term loans at Libor plus an applicable margin ranging from 112.5 bps to 137.5 bps, depending on the total leverage ratio. The applicable margin is initially 137.5 bps.

The agreement contains financial covenants requiring Synopsys to maintain a maximum leverage ratio and a minimum interest coverage ratio.

JPMorgan Chase Bank, NA, Bank of America Merrill Lynch, MUFG and Wells Fargo Securities, LLC are co-lead arrangers and co-bookrunners for the restated credit agreement. Bank of America, NA, MUFG and Wells Fargo Bank, NA are co-syndication agents, and HSBC Bank USA, NA and U.S. Bank NA are co-documentation agents. JPMorgan is administrative agent.

Synopsys is a software developer based in Mountain View, Calif.

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