Cadence obtains three-year $300 million unsecured term loan facility

By Wendy Van Sickle

Columbus, Ohio, Feb. 3 – Cadence Design Systems, Inc. entered into a three-year $300 million senior unsecured non-amortizing term loan facility on Jan. 28, according to an 8-K filing with the Securities and Exchange Commission.

Initial interest is Libor plus 112.5 basis points, but the margin can increase up to 187.5 bps, depending on Cadence’s leverage ratio.

J.P. Morgan Securities and Bank of America Merrill Lynch served as joint arrangers and bookrunners, and JPMorgan Chase Bank, NA is the administrative agent.

The loan agreement requires Cadence to maintain a maximum ratio of funded debt to EBITDA of 2.75 times, with a step-up to 3.25 times for one year following an acquisition of at least $250 million that results in a pro forma leverage ratio between 2.5 times and 3 times.

Cadence must also maintain an EBITDA to interest charges ratio of at least 3 times.

Proceeds are to be used to finance working capital and capital expenditures.

Based in San Jose, Calif., Cadence provides tools and services for semiconductor design.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.