Cadence Design Systems Closes $2.5 Billion Senior Notes Offering By Investing.com

SAN JOSE, CA—Cadence Design Systems, Inc. (NASDAQ:CDNS), a leader in prepackaged software services, announced the closure of its public offering of senior notes totaling $2.5 billion on Monday. This strategic financial move involves three different series of notes, with varying interest rates and maturities.

The offering comprises $500 million of 4.200% Senior Notes due in 2027, $1 billion of 4.300% Senior Notes due in 2029, and another $1 billion of 4.700% Senior Notes maturing in 2034. Interest on these notes will accrue from today, with semi-annual payments starting on March 10, 2025.

Cadence Design (NASDAQ:) Systems specified that the notes, which are unsecured, rank equally with all of its existing and future senior indebtedness. Depending on the series, the company can redeem the notes at a premium before their respective maturity dates or at par closer to maturity.

The agreements also include covenants limiting the company’s ability to secure debt with liens, engage in certain sale and leaseback transactions, and merge or sell a substantial portion of its assets. These covenants come with exceptions and are subject to specific conditions outlined in the indenture.

Furthermore, Cadence used a portion of the net proceeds from the notes offering to prepay and terminate two existing loan agreements. These were a loan agreement dated September 7, 2022, and another dated May 30, 2024, both with Bank of America, N.A.

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