Summary
Cadence Design Systems, Inc. (CDNS) announced on June 9, 2010, a proposed offering of $300 million in cash convertible senior notes due 2015. This transaction is being conducted in a manner exempt from registration under the Securities Act of 1933. The company also intends to provide an over-allotment option of up to an additional $50 million for the initial purchasers, potentially increasing the total offering size to $350 million. In conjunction with this proposed debt issuance, Cadence's Board of Directors has authorized a share repurchase program of up to $40 million of the company's common stock. The execution and pricing of the stock buyback are contingent upon the pricing of the convertible notes offering. These actions suggest a strategic move by Cadence to manage its capital structure and return value to shareholders.
Key Highlights
- 1Proposed offering of $300 million in cash convertible senior notes due 2015.
- 2Potential for an additional $50 million in notes to cover over-allotments, bringing total to $350 million.
- 3The offering is exempt from registration under the Securities Act of 1933.
- 4Company's Board of Directors authorized a stock repurchase program of up to $40 million.
- 5Stock repurchase is contingent on the pricing of the convertible notes offering.
- 6Filing includes a press release dated June 9, 2010, as an exhibit.