Summary
Autodesk, Inc. (ADSK) announced on May 23, 2013, the execution of an Amended and Restated Credit Agreement, which modifies its existing credit facility. This new agreement establishes a $400 million unsecured revolving credit facility, with an option to increase it by an additional $100 million, providing substantial liquidity for working capital and general corporate purposes. The facility has a maturity date of May 26, 2018, and notably, no loans were outstanding under the agreement at the time of filing. The credit facility features variable interest rates dependent on Autodesk's public debt rating, with options for either a base rate plus a margin or an LIBOR-based rate plus a margin. Autodesk will also pay a quarterly facility fee. The agreement includes financial covenants, such as a maximum leverage ratio and a minimum interest coverage ratio, along with customary affirmative and negative covenants restricting certain corporate actions like asset disposals or incurring subsidiary debt, subject to exceptions. Standard events of default are also detailed, which could lead to the acceleration of obligations.
Key Highlights
- 1Autodesk entered into an Amended and Restated Credit Agreement on May 23, 2013.
- 2The agreement provides a $400 million unsecured revolving credit facility, with an option to increase by $100 million.
- 3The credit facility is available for working capital and general corporate purposes.
- 4Revolving loans can be borrowed, repaid, and reborrowed until May 26, 2018.
- 5No loans were outstanding under the credit agreement as of the filing date.
- 6Interest rates and facility fees are variable and depend on Autodesk's public debt rating.
- 7The agreement includes financial covenants (leverage, interest coverage) and customary restrictive covenants.