Summary
This 8-K filing from Adobe Systems Incorporated reports on a significant drawndown from its revolving credit facility. On September 22, 2009, the company borrowed $650 million under its $1 billion senior unsecured revolving credit facility. This action fully utilizes the available credit line, leaving no remaining availability. The primary purpose for this borrowing is for general corporate purposes, notably to finance the acquisition of Omniture, Inc. This indicates a strategic move by Adobe to expand its operations through acquisition. Investors should note that the credit facility matures in February 2013, with options to extend the maturity date annually. The filing also discloses that lenders and their affiliates provide various financial services to Adobe, for which they receive customary fees.
Key Highlights
- 1Adobe Systems Incorporated drew $650 million on September 22, 2009, under its revolving credit facility.
- 2This borrowing fully utilized the company's $1 billion senior unsecured revolving credit facility, leaving no remaining availability.
- 3The drawn funds are intended for general corporate purposes, specifically to finance the acquisition of Omniture, Inc.
- 4The credit facility is a five-year agreement with a maturity date of February 16, 2013.
- 5Adobe has the option to request an extension of the maturity date for its lenders on each anniversary of the credit agreement's closing date.
- 6The facility has an option to increase commitments by an additional $500 million, bringing the total to $1.5 billion.
- 7The credit agreement includes customary covenants and financial conditions, with potential consequences for default.