Company: SNPS
Filing Date: 2025-03-05
Form Type: 424B5
Source: 0001140361-25-007235
Chunk: 34

Company: SYNOPSYS INC
Filing Date: 2025-03-05
Form: 424B5
Chunk 34
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 term loans for the purpose of financing a portion of the cash consideration to be paid in the Ansys Merger and paying related fees and expenses in connection with the Ansys Merger and the other transactions contemplated by the Merger Agreement. We expect to incur a substantial amount of debt in connection with the Ansys Merger. The issuance of notes, as contemplated by this prospectus supplement and whose proceeds will be used to fund part of the cash portion of the merger consideration and to pay related transaction fees and expenses, will add to the outstanding indebtedness of Synopsys. Our level of indebtedness could have important consequences to our financial health. For example, our level of indebtedness could, among other things:

| • | make it more difficult for us to satisfy our financial obligations, including those relating to the notes and our Term Loan Credit Agreement and Revolving Credit Agreement; |

| • | affect our liquidity by limiting our ability to obtain additional financing for working capital, or limit our ability to obtain financing for capital expenditures and acquisitions or make any available financing more costly; |

| • | increase our interest expense and potentially require us to dedicate all or a substantial portion of our cash flow to service our debt, thereby reducing the availability of cash to fund our business needs, and limit our ability to return equity through our stock repurchase program or pay dividends to our stockholders; |

| • | limit our ability to borrow additional funds in the future to fund growth, acquisitions, working capital, capital expenditures or other purposes; |

| • | increase our vulnerability to changing economic, regulatory and industry conditions; |

| • | limit our ability to compete and our flexibility in planning for, or reacting to, changes in our business and the industry; |

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| • | place us at a disadvantage compared to other, less leveraged competitors and competitors that have greater access to capital resources; |

| • | negatively impact our credit rating, which could limit our ability to obtain additional financing in the future and adversely affect our business; and |

| • | result in an event of default if we fail to satisfy our obligations under the notes or the agreements governing our other debt or fail to comply with the financial and other restrictive covenants contained in the indenture governing the notes or the agreements governing our other debt, which event of default could result in the notes and all of our debt becoming immediately due and payable and could permit certain of our lenders to foreclose on our assets securing such debt. |

We may also incur substantial