Summary
Synopsys, Inc. (SNPS) has filed an 8-K report announcing the entry into a new, larger senior unsecured revolving credit facility. This new facility, valued at $300.0 million, replaces a previous $250.0 million credit line and extends for five years, maturing on October 20, 2011. The company also has the option to increase the facility by an additional $150.0 million within the first four years. This updated credit agreement provides Synopsys with enhanced financial flexibility and greater borrowing capacity. While the facility includes financial covenants such as minimum leverage ratios and cash levels, the company had not made any borrowings under the new facility as of the filing date. The terms for interest rates and commitment fees are detailed, with options for prime rate, federal funds rate, or Eurodollar rates based on a pricing grid tied to financial performance.
Key Highlights
- 1Synopsys entered into a new five-year, $300 million senior unsecured revolving credit facility on October 20, 2006.
- 2This new facility replaces a previous $250 million credit facility.
- 3The company has the option to increase the facility by an additional $150 million within the first four years.
- 4The facility matures on October 20, 2011.
- 5Key financial covenants include maintaining a minimum leverage ratio and specified cash levels.
- 6Borrowing interest rates are tied to prime rate, federal funds rate, or Eurodollar rates with a spread based on a pricing grid.
- 7No borrowings had been made under the new facility as of the filing date.