8-KMaterial AgreementsFinancial EventsOther Events+1

Autodesk, Inc. 8-K Report, Material Agreement (Jun 8, 2015)

Filed June 8, 2015For Securities:ADSK

Summary

This Form 8-K filing by Autodesk, Inc. (ADSK) on June 8, 2015, reports on the company's successful completion of a public offering of senior notes. Autodesk issued and sold an aggregate of $750 million in notes, specifically $450 million of 3.125% Notes due 2020 and $300 million of 4.375% Notes due 2025. The offering was conducted under the company's existing registration statement and closed on June 5, 2015. This transaction represents a significant debt financing event for Autodesk, providing capital for its operations and potentially for strategic initiatives. The filing details the underwriting agreement with J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, along with the supplemental indenture with U.S. Bank National Association as trustee. The notes carry specific interest rates and semi-annual payment dates. The indenture includes covenants that limit Autodesk's ability to incur liens, engage in sale-leaseback transactions, or consolidate/sell all of its assets. It also outlines conditions for repurchase upon a change of control and downgrade, and redemption options. Investors should note the specific terms and covenants associated with these new debt issuances.

Key Highlights

  • 1Autodesk completed a public offering of $750 million in aggregate principal amount of senior notes.
  • 2The offering comprised $450 million of 3.125% Notes due 2020 and $300 million of 4.375% Notes due 2025.
  • 3The transaction closed on June 5, 2015, under the company's effective registration statement.
  • 4J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as underwriters.
  • 5The notes are governed by an indenture with U.S. Bank National Association as trustee.
  • 6Autodesk may be required to repurchase notes upon a change of control coupled with a rating downgrade.
  • 7The indenture includes covenants restricting certain corporate actions such as incurring liens and asset sales.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report on Autodesk's entry into a material definitive agreement regarding the issuance and sale of $750 million in senior notes, consisting of $450 million in 3.125% Notes due 2020 and $300 million in 4.375% Notes due 2025.

The notes have fixed interest rates of 3.125% for the 2020 Notes and 4.375% for the 2025 Notes. Interest is payable semi-annually on June 15 and December 15, commencing December 15, 2015. The offering was underwritten by J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated.

The indenture contains limited affirmative and negative covenants. Key restrictions include limitations on Autodesk and its subsidiaries from incurring liens on principal property, engaging in sale-and-leaseback transactions involving principal property, and consolidating, merging, or selling substantially all of its assets. These covenants are designed to protect bondholders by maintaining the company's asset base and financial flexibility.

Autodesk may be required to offer to repurchase the notes upon a 'change in control' event that is accompanied by a downgrade of the notes' ratings below investment grade. The company may also elect to redeem the notes under specified terms outlined in the indenture.