Summary by Moomoo AI
Cadence Design Systems has successfully closed its previously announced $2.5 billion senior notes offering on September 10, 2024. The offering consists of three tranches: $500 million of 4.200% notes due 2027, $1 billion of 4.300% notes due 2029, and $1 billion of 4.700% notes due 2034. Interest payments will be made semi-annually starting March 10, 2025.The notes represent general unsecured senior obligations ranking equal to existing and future senior indebtedness. The company has included optional redemption provisions for each tranche and will be required to repurchase all outstanding notes upon a Change of Control Triggering Event.The company has used a portion of the net proceeds to fully prepay and terminate two existing loan agreements with Bank of America, N.A. and other lenders. The notes were offered under the company's Registration Statement on Form S-3, which became effective on September 3, 2024.
