Summary
Autodesk, Inc. (ADSK) announced on May 28, 2015, the execution of an Amended and Restated Credit Agreement, effectively replacing its prior credit facility from May 2013. This new agreement establishes a $400 million unsecured revolving credit facility with Citibank, N.A., as agent. The facility includes an option for Autodesk to increase the borrowing capacity by an additional $100 million under specific conditions. This credit line is intended for general corporate purposes and working capital needs. Importantly, no borrowings are currently outstanding, indicating a strong liquidity position for Autodesk at the time of the filing. The facility has a maturity date of May 29, 2020, with various interest rate options tied to market rates and Autodesk's credit rating. The agreement also includes customary financial covenants and default provisions, designed to ensure the company maintains financial health.
Key Highlights
- 1Autodesk entered into a new $400 million unsecured revolving credit facility, with an option to increase it by $100 million.
- 2The new credit agreement replaces a previous agreement from May 2013.
- 3The facility is for working capital and general corporate purposes.
- 4No loans are currently outstanding under the new credit agreement, suggesting strong current liquidity.
- 5The credit facility matures on May 29, 2020.
- 6Interest rates are variable, based on either a base rate or LIBOR, plus a margin dependent on Autodesk's Public Debt Rating.
- 7The agreement includes financial covenants such as maximum debt to capitalization and minimum interest coverage ratios.