Cadence Design Systems Inc 8-K, filed Aug 15, 2024

Cadence Design Systems Inc (CDNS)

8-K 2024-08-15 For: 2024-08-14

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Added on April 11, 2026

About this 8-K

Cadence Design Systems Inc filed this 8-K on August 15, 2024, reporting on events of August 14, 2024.

Items reported

Item 1.01: Entered into a material agreement
Item 1.02: Ended a material agreement
Item 2.03: New debt or off-balance-sheet obligation
Item 9.01: Financial statements and exhibits

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☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit No.						Description

10.1						Credit Agreement, dated August 14, 2024, by and among Cadence Design Systems, Inc., Bank of America, N.A., as a lender and administrative agent, the other lenders and issuing banks party thereto and BofA Securities, Inc., JPMorgan Chase Bank, N.A. and HSBC Bank USA, National Association, as joint lead arrangers and joint bookrunners.

10.2						First Amendment to Loan Agreement, dated August 14, 2024, with respect to that certain Loan Agreement, dated September 7, 2022, by and among Cadence Design Systems, Inc., Bank of America, N.A. and the other lenders party thereto.

10.3						First Amendment to Loan Agreement, dated August 14, 2024, with respect to that certain Loan Agreement, dated May 30, 2024, by and among Cadence Design Systems, Inc., Bank of America, N.A. and the other lenders party thereto.

104						Cover Page Interactive Data File (embedded within the Inline XBRL document).


CADENCE DESIGN SYSTEMS, INC.

By:						/s/ John M. Wall
						John M. Wall
						Senior Vice President and Chief Financial Officer


ARTICLE I DEFINITIONS AND ACCOUNTING TERMS		1
	1.01 Defined Terms	1
	1.02 Other Interpretive Provisions	24
	1.03 Accounting Terms	25
	1.04 Rounding	26
	1.05 Times of Day	26
	1.06 Interest Rates	26

ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS		27

	2.01 Revolving Loans	27
	2.02 Borrowings, Conversions and Continuations of Loans	28
	2.03 Letters of Credit	30
	2.04 Swing Line Loans	38
	2.05 Prepayments	42
	2.06 Termination or Reduction of Aggregate Revolving Commitments	43
	2.07 Repayment of Loans	43
	2.08 Interest	44
	2.09 Fees	44
	2.10 Computation of Interest and Fees	45
	2.11 Evidence of Debt	45
	2.12 Payments Generally; Administrative Agent’s Clawback	46
	2.13 Sharing of Payments by Lenders	47
	2.14 Cash Collateral	48
	2.15 Defaulting Lenders	49
	2.16 Extension of Maturity Date	51

ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY		53

	3.01 Taxes	53
	3.02 Illegality	57
	3.03 Inability to Determine Rates	58
	3.04 Increased Costs	58
	3.05 Compensation for Losses	61
	3.06 Mitigation Obligations; Replacement of Lenders	62
	3.07 Survival	62

ARTICLE IV [RESERVED]		62

ARTICLE V CONDITIONS PRECEDENT TO CREDIT EXTENSIONS		62

	5.01 Conditions to Effectiveness of the Agreement	62
	5.02 Conditions to the Credit Extension	64

ARTICLE VI REPRESENTATIONS AND WARRANTIES		64

	6.01 Existence, Qualification and Power	64
	6.02 Authorization; No Contravention	64
	6.03 Governmental Authorization; Other Consents	65
	6.04 Binding Effect	65
	6.05 Financial Statements; No Material Adverse Effect	65
	6.06 Litigation	66


	6.07 Taxes	66
	6.08 “Plan Assets”	66
	6.09 Margin Regulations; Investment Company Act	66
	6.10 Disclosure	66
	6.11 Compliance with Laws	67
	6.12 OFAC; Anti-Corruption Laws	67
	6.13 Affected Financial Institutions	67

ARTICLE VII AFFIRMATIVE COVENANTS		67

	7.01 Financial Statements	67
	7.02 Certificates; Other Information	68
	7.03 Notices	70
	7.04 Payment of Taxes	70
	7.05 Preservation of Existence	70
	7.06 Compliance with Laws	70
	7.07 Inspection Rights	70
	7.08 Use of Proceeds	71
	7.09 Anti-Corruption Laws	71
	7.10 Ranking	71

ARTICLE VIII NEGATIVE COVENANTS		71

	8.01 Liens	71
	8.02 [Reserved]	73
	8.03 Indebtedness	73
	8.04 Fundamental Changes	74
	8.05 Dispositions	75
	8.06 Change in Nature of Business	75
	8.07 Transactions with Affiliates	75
	8.08 Use of Proceeds	75
	8.09 Financial Covenant	75
	8.10 Fiscal Year	76
	8.11 Sanctions	76
	8.12 Anti-Corruption Laws	76

ARTICLE IX EVENTS OF DEFAULT AND REMEDIES		76

	9.01 Events of Default	76
	9.02 Remedies Upon Event of Default	78
	9.03 Application of Funds	79

ARTICLE X ADMINISTRATIVE AGENT		79

	10.01 Appointment and Authority	80
	10.02 Rights as a Lender	80
	10.03 Exculpatory Provisions	80
	10.04 Reliance by Administrative Agent	81
	10.05 Delegation of Duties	81
	10.06 Resignation of Administrative Agent	82
	10.07 Non-Reliance on Administrative Agent and Other Lenders	83
	10.08 No Other Duties; Etc	84
	10.09 Administrative Agent May File Proofs of Claim	84
	10.10 ERISA Matters	85
	10.11 Recovery of Erroneous Payments	86


ARTICLE XI MISCELLANEOUS		86

	11.01 Amendments, Etc	86
	11.02 Notices; Effectiveness; Electronic Communications	88
	11.03 No Waiver; Cumulative Remedies; Enforcement	90
	11.04 Expenses; Indemnity; Damage Waiver	90
	11.05 Payments Set Aside	92
	11.06 Successors and Assigns	93
	11.07 Treatment of Certain Information; Confidentiality	97
	11.08 Rights of Setoff	98
	11.09 Interest Rate Limitation	98
	11.10 Counterparts; Integration; Effectiveness	99
	11.11 Survival of Representations and Warranties	99
	11.12 Severability	99
	11.13 Replacement of Lenders	99
	11.14 Governing Law; Jurisdiction; Etc	100
	11.15 Waiver of Jury Trial	102
	11.16 No Advisory or Fiduciary Responsibility	102
	11.17 Electronic Execution; Electronic Records	102
	11.18 USA PATRIOT Act Notice	103
	11.19 [Reserved.]	104
	11.20 California Judicial Reference	104
	11.21 Acknowledgment and Consent to Bail-In of Affected Financial Institutions	104
	11.22 Acknowledgement Regarding any Supported QFCs	105


2.01						Revolving Commitments and Applicable Percentages
2.03						Letter of Credit Commitments
8.01						Liens Existing on the Closing Date
8.03						Indebtedness Existing on the Closing Date
11.02						Certain Addresses for Notices


2.02						Form of Loan Notice
2.03						Form of Letter of Credit Report
2.04						Form of Swing Line Loan Notice
2.05						Form of Notice of Loan Prepayment
2.11(a)						Form of Note
3.01						Forms of U.S. Tax Compliance Certificates
7.02						Form of Compliance Certificate
11.06(b)						Form of Assignment and Assumption
11.06(b)(iv)						Form of Administrative Questionnaire


Pricing Level	Debt Rating of Borrower (Moody’s/S&P/Fitch)	Commitment Fee	Applicable Rate for Term SOFR Loans	Letter of Credit Fee	Applicable Rate for Base Rate Loans
I	> A1 / A+ / A+	0.050%	0.625%	0.625%	0.000%
II	A2 / A / A	0.065%	0.750%	0.750%	0.000%
III	A3/ A- / A-	0.075%	0.875%	0.875%	0.000%
IV	Baa1/ BBB+ / BBB+	0.100%	1.000%	1.000%	0.000%
V	< Baa2 / BBB / BBB	0.125%	1.125%	1.125%	0.125%


BORROWER:						CADENCE DESIGN SYSTEMS, INC.,
						a Delaware corporation


						By:/s/ Charlie Eldredge
						Name: Charlie Eldredge
						Title: VP - Treasurer


ADMINISTRATIVE AGENT:						BANK OF AMERICA, N.A.,
						as Administrative Agent


						By:/s/ Liliana Claar
						Name: Liliana Claar
						Title: Vice President


LENDERS:						BANK OF AMERICA, N.A.,
						as a Lender, Swing Line Lender and L/C Issuer


						By:/s/ Haley Heslip
						Name: Haley Heslip
						Title: Director


						HSBC BANK USA, NATIONAL ASSOCIATION,
						as a Lender and an L/C Issuer


						By:/s/ Mark C. Gibbs
						Name: Mark C. Gibbs
						Title: Managing Director


						JPMORGAN CHASE BANK, N.A.,
						as a Lender and an L/C Issuer


						By:/s/ Ryan M. Becker
						Name: Ryan M. Becker
						Title: Vice President


						GOLDMAN SACHS BANK USA,
						as a Lender


						By:/s/ Rebecca Kratz
						Name: Rebecca Kratz
						Title: Authorized Signatory


						ROYAL BANK OF CANADA,
						as a Lender


						By:/s/ Nicholas Heslip
						Name: Nicholas Heslip
						Title: Managing Director


						MIZUHO BANK, LTD.,
						as a Lender


						By:/s/ Tracy Rahn
						Name: Tracy Rahn
						Title: Managing Director


						U.S. BANK NATIONAL ASSOCIATION,
						as a Lender


						By:/s/ Lukas Coleman
						Name: Lukas Coleman
						Title: Vice President


						MORGAN STANLEY BANK, N.A.,
						as a Lender


						By:/s/ Julie Lilienfeld
						Name: Julie Lilienfeld
						Title: Authorized Signatory


						MUFG BANK, LTD.,
						as a Lender


						By:/s/ Matthew McGraw
						Name: Matthew McGraw
						Title: Managing Director


						HSBC BANK USA, NATIONAL ASSOCIATION,
						as a Lender


						By: /s/ Mark C. Gibbs
						Name: Mark C. Gibbs
						Title: Managing Director


						JPMORGAN CHASE BANK, N.A.,
						as a Lender


						By: /s/ Ryan M. Becker
						Name: Ryan M. Becker
						Title: Vice President


						ROYAL BANK OF CANADA,
						as a Lender


						By: /s/ Nicholas Heslip
						Name: Nicholas Heslip
						Title: Authorized Signatory


						THE BANK OF NOVA SCOTIA,
						as a Lender


						By: /s/ Luke Copley
						Name: Luke Copley
						Title: Director


						WELLS FARGO BANK, NATIONAL ASSOCIATION,
						as a Lender


						By: /s/ William Mason
						Name: William Mason
						Title: Vice President


Pricing Level	Debt Rating of Borrower (Moody’s/S&P/Fitch)	Applicable Rate for Term SOFR Loans	Applicable Rate for Base Rate Loans
I	> A / A2 / A / A	0.625%	0.000%
II	A- / A3 / A- / A-	0.750%	0.000%
III	BBB+ / Baa1 / BBB+ / BBB+	0.875%	0.000%
IV	BBB / Baa2 / BBB / BBB	1.000%	0.000%
V	< BBB- / Baa3 / BBB- / BBB-	1.125%	0.125%


	6.10 Disclosure	4344
	6.11 Compliance with Laws	4344
	6.12 OFAC; Anti-Corruption Laws	4344
	6.13 Affected Financial Institutions	4445

ARTICLE VII AFFIRMATIVE COVENANTS		4445

	7.01 Financial Statements	4445
	7.02 Certificates; Other Information	4546
	7.03 Notices	4647
	7.04 Payment of Taxes	4748
	7.05 Preservation of Existence	4748
	7.06 Compliance with Laws	4748
	7.07 Inspection Rights	4748
	7.08 Use of Proceeds	4748
	7.09 Anti-Corruption Laws	4748
	7.10 Ranking	4749

ARTICLE VIII NEGATIVE COVENANTS		4849

	8.01 Liens	4849
	8.02 [Reserved]	5051
	8.03 Indebtedness	5051
	8.04 Fundamental Changes	5152
	8.05 Dispositions	5152
	8.06 Change in Nature of Business	5153
	8.07 Transactions with Affiliates	5153
	8.08 Use of Proceeds	5253
	8.09 Financial Covenant	5253
	8.10 Fiscal Year	5254
	8.11 Sanctions	5254
	8.12 Anti-Corruption Laws	5254

ARTICLE IX EVENTS OF DEFAULT AND REMEDIES		5354

	9.01 Events of Default	5354
	9.02 Remedies Upon Event of Default	5556
	9.03 Application of Funds	5557

ARTICLE X ADMINISTRATIVE AGENT		5657

	10.01 Appointment and Authority	5657
	10.02 Rights as a Lender	5658
	10.03 Exculpatory Provisions	5658
	10.04 Reliance by Administrative Agent	5759
	10.05 Delegation of Duties	5759
	10.06 Resignation of Administrative Agent	5859
	10.07 Non-Reliance on Administrative Agent and Other Lenders	5960
	10.08 No Other Duties; Etc	5961
	10.09 Administrative Agent May File Proofs of Claim	5961
	10.10 ERISA Matters	6062
	10.11 Recovery of Erroneous Payments	6163

ARTICLE XI MISCELLANEOUS		6163

	11.01 Amendments, Etc	6163
	11.02 Notices; Effectiveness; Electronic Communications	6365


			11.03 No Waiver; Cumulative Remedies; Enforcement			6567
			11.04 Expenses; Indemnity; Damage Waiver			6567
			11.05 Payments Set Aside			6769
			11.06 Successors and Assigns			6870
			11.07 Treatment of Certain Information; Confidentiality			7173
			11.08 Rights of Setoff			7274
			11.09 Interest Rate Limitation			7375
			11.10 Counterparts; Integration; Effectiveness			7375
			11.11 Survival of Representations and Warranties			7375
			11.12 Severability			7376
			11.13 Replacement of Lenders			7476
			11.14 Governing Law; Jurisdiction; Etc			7577
			11.15 Waiver of Jury Trial			7678
			11.16 No Advisory or Fiduciary Responsibility			7678
			11.17 Electronic Execution; Electronic Records			7679
			11.18 USA PATRIOT Act Notice			7780
			11.19 [Reserved.]			7880
			11.20 California Judicial Reference			7880
			11.21 Acknowledgment and Consent to Bail-In of Affected Financial Institutions			7881
			11.22 Acknowledgement Regarding any Supported QFCs			7981