Skip to content
AnalystLens

CADENCE DESIGN SYSTEMS INC 8-K Report, Material Agreement (Sep 22, 2014)

Reports
Material Agreements·Financial Events·Exhibits & Filings
Filing Date
Filed September 22, 2014
Period End
September 19, 2014
Security
CDNS
In the record · 2016–202610-K1210-Q328-K98

CDNS filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 98 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Leadership change8-K · May ’19May ’19
  3. Leadership change8-K · Jul ’21Jul ’21
  4. Material agreement8-K · Sep ’25Sep ’25

01—Abstract

Summary

Summary of the 8-K filed September 22, 2014. Cited figures are marked; the original filing is the authoritative source.

Cadence Design Systems, Inc. (CDNS) announced a significant amendment to its credit facility on September 19, 2014.

The company entered into a $250 milliona five-year senior unsecured revolving credit facility, effectively transitioning from a secured to an unsecured credit arrangement. This move involved releasing all previously held liens and subsidiary guarantees, which can signal increased financial flexibility and confidence from lenders. The primary use of these funds is flexible, covering working capital, capital expenditures, mergers and acquisitions, and other general corporate purposes.

The terms regarding interest rates and fees remain largely consistent with the previous agreement, offering a choice between LIBOR-based or base rate-based interest with varying margins tied to the company's leverage ratio. This unsecured facility, maturing in September 2019, provides Cadence with substantial financial resources while maintaining key financial covenants such as debt-to-EBITDA and EBITDA-to-interest coverage ratios.

02—Key points

Key Highlights

  1. Cadence Design Systems entered into a $250 million, five-year senior unsecured revolving credit facility.
  2. The new facility amends and replaces a prior secured credit agreement, releasing all associated liens and subsidiary guarantees.
  3. Funds can be used for working capital, capital expenditures, M&A, and other lawful corporate purposes.
  4. The credit facility matures on September 19, 2019.
  5. Interest rates are based on either BBA LIBOR or a base rate, plus a margin dependent on Cadence's leverage ratio.
  6. Customary covenants restricting debt, liens, investments, and asset dispositions are in place.
  7. Key financial covenants include maintaining a funded debt to EBITDA ratio below 2.75:1 and an EBITDA to interest charges ratio of at least 3:1.

03—Questions

Frequently Asked Questions

  1. What is the main change in Cadence's credit facility?

    The main change is the transition from a senior secured revolving credit facility to a senior unsecured revolving credit facility. This means that Cadence no longer needs to provide specific assets as collateral for the loan, and its subsidiaries are no longer required to guarantee the debt.

  2. What is the total amount and duration of the new credit facility?

    The new credit facility has a total amount of $250 million and a term of five years, with a maturity date of September 19, 2019.

  3. What are the key financial covenants Cadence must adhere to?

    Cadence must maintain a funded debt to EBITDA ratio not greater than 2.75 to 1 and an EBITDA to interest charges ratio of at least 3 to 1. These covenants are subject to certain exceptions outlined in the agreement.

  4. How does this change impact Cadence's financial flexibility?

    By moving to an unsecured facility and releasing liens and guarantees, Cadence demonstrates improved financial standing and lender confidence. This typically provides greater operational and financial flexibility for future strategic decisions, such as acquisitions or investments, without tying up specific assets.

04—Continue

← View all 8-K filings