Summary by Moomoo AI
Cadence Design Systems has entered into an underwriting agreement on September 4, 2024, for a $2.5 billion senior notes offering. The offering comprises three tranches: $500 million of 4.200% notes due 2027, $1.0 billion of 4.300% notes due 2029, and $1.0 billion of 4.700% notes due 2034. The notes will be general unsecured senior obligations, ranking equal to existing and future senior indebtedness.The offering is expected to close on September 10, 2024, subject to customary conditions. The company has partnered with J.P. Morgan Securities, BofA Securities, and HSBC Securities as lead underwriters. The issuance is made under the company's Registration Statement on Form S-3, which became effective on September 3, 2024.Proceeds will be used to repay outstanding amounts under the company's three-year and two-year senior term loan facilities. The remaining funds will support general corporate purposes, including potential debt repayment, working capital, capital expenditures, and acquisitions.
