Summary
Autodesk, Inc. (ADSK) announced on October 7, 2021, the issuance of $1 billion in aggregate principal amount of 2.400% Notes due 2031. This financing was secured through an indenture agreement with U.S. Bank National Association. The notes carry a semi-annual interest payment obligation and include provisions for repurchase upon a change of control event coupled with a credit rating downgrade below investment grade. The company also retains the option to redeem these notes under specific terms outlined in the indenture. Investors should note that the indenture imposes certain restrictions on Autodesk and its subsidiaries, including limitations on incurring liens on principal property, engaging in sale and lease-back transactions, and significant asset dispositions. The document also details standard events of default, such as failure to meet payment obligations or insolvency, which could lead to the acceleration of the principal amount due. This debt issuance is a significant event for the company's capital structure and financial obligations.
Key Highlights
- 1Autodesk issued $1 billion of 2.400% Notes due 2031.
- 2The debt issuance is governed by a Base Indenture and a Fifth Supplemental Indenture with U.S. Bank National Association as trustee.
- 3Interest on the notes is payable semi-annually at a 2.400% annual rate, with the first payment due June 15, 2022.
- 4The company may be required to repurchase notes upon a change of control event combined with a credit rating downgrade to below investment grade.
- 5Autodesk has the option to redeem the notes in whole or in part at specified terms.
- 6The indenture includes covenants restricting Autodesk and subsidiaries from incurring certain liens, engaging in sale-leaseback transactions, and selling substantially all assets.
- 7Standard events of default are outlined, which could lead to acceleration of the principal amount.