Company: PTC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015530
Chunk: 79

Company: PTC INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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1.25 billion revolving credit facility, (ii) a $500 million term loan credit facility, and (iii) an incremental facility pursuant to which we may incur additional term loan tranches or increase the revolving credit facility. On October 1, 2024, we entered into an amendment to our credit facility which removed a repayment obligation as of November 16, 2024 in the event that the 2025 notes had not been redeemed or refinanced as of that date.As of December 31, 2024, unused commitments under our credit facility were $1,190.0 million and amounts available for borrowing were $1,174.5 million. As of December 31, 2024, the fair value of our credit facility approximates its book value.

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PTC and certain eligible foreign subsidiaries are eligible borrowers under the credit facility. As of December 31, 2024, no funds were borrowed by an eligible foreign subsidiary borrower.Loans under the credit facility bear interest at variable rates. As of December 31, 2024, the annual rate for borrowings outstanding was 5.9%. A quarterly revolving commitment fee on the undrawn portion of the revolving credit facility is required, ranging from 0.175% to 0.325% per annum, based upon our total leverage ratio.As of December 31, 2024, we were in compliance with all financial and operating covenants of the credit facility.InterestIn the three months ended December 31, 2024 and December 31, 2023, we incurred interest expense on our debt of $22.0 million and $35.3 million, respectively. The average interest rate on borrowings outstanding was approximately 4.7% and 5.7% during the three months ended December 31, 2024 and December 31, 2023, respectively.

11. Commitments and ContingenciesGuarantees and Indemnification ObligationsWe enter into standard indemnification agreements with our customers and business partners in the ordinary course of our business. Under such agreements, we typically indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to our products. Indemnification may also cover other types of claims, including claims relating to certain data breaches. These agreements typically limit our liability with respect to indemnification claims other