Summary
Autodesk, Inc. (ADSK) filed an 8-K report on May 27, 2011, detailing the entry into a new $400 million unsecured revolving credit facility, with an option to increase it by an additional $100 million. This facility, established on May 26, 2011, with Citibank, N.A. as the agent, replaces a previous credit line and is primarily intended to support working capital and general corporate purposes for Autodesk and its subsidiaries. The agreement has a five-year term, maturing on May 26, 2016, with no outstanding borrowings at the time of the filing. The new credit agreement includes key terms such as interest rates tied to Autodesk's leverage ratio, a facility fee, and prepayment flexibility without penalty. It also imposes financial covenants requiring Autodesk to maintain a maximum leverage ratio and a minimum interest coverage ratio. Furthermore, customary negative covenants are in place, restricting certain corporate actions like granting liens, mergers, asset dispositions, and incurring subsidiary indebtedness, with standard exceptions. The report also notes the customary inclusion of events of default that could lead to acceleration of obligations.
Key Highlights
- 1Autodesk entered into a new $400 million unsecured revolving credit facility, maturing in May 2016.
- 2The company has the option to increase the facility by an additional $100 million.
- 3The credit facility is intended for working capital and general corporate purposes.
- 4Interest rates and facility fees are variable, based on Autodesk's leverage ratio.
- 5Revolving loans can be prepaid without penalty.
- 6The agreement includes financial covenants (maximum leverage ratio, minimum interest coverage ratio) and customary negative covenants.
- 7The new facility replaces a previous credit agreement and had no outstanding borrowings at the time of filing.