Cadence enters $700M term loan to finance BETA CAE acquisition; issues 1.74M shares as partial consideration

CADENCE DESIGN SYSTEMS INC

$700M two-year senior unsecured term loan at SOFR+0.875%-1.375% or base+0%-0.375%, depending on debt rating.
Proceeds fully used to finance the May 30, 2024 acquisition of BETA CAE Systems International AG.
Issued 1,740,931 shares of common stock (unregistered) to BETA CAE shareholders as part of the acquisition consideration.
Loan covenant requires funded debt/Consolidated EBITDA ratio ≤3.25x (step-up to 3.75x for one year after major acquisition).
Initial Applicable Rate set at Pricing Level II (A3/A-/A-).

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