Company: SNPS
Filing Date: 2025-03-05
Form Type: 424B5
Source: 0001140361-25-007235
Chunk: 17

Company: SYNOPSYS INC
Filing Date: 2025-03-05
Form: 424B5
Chunk 17
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 certain businesses and assets, as well as term loan commitments under certain qualifying term loan facilities, will result in mandatory commitment reductions under the Bridge Commitment.

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TABLE OF CONTENTS

Term Loan Credit Agreement On February 13, 2024, we entered into a credit agreement (the “Term Loan Credit Agreement”) in connection with the financing of the pending Ansys Merger. The Term Loan Credit Agreement provides us with the ability to borrow up to $4.3 billion in term loans at the closing of the Ansys Merger, subject to the satisfaction of customary closing conditions for similar facilities, 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. The Term Loan Credit Agreement provides for two tranches of senior unsecured term loans: a $1.45 billion tranche (“Tranche 1”) that matures two years after funding and a $2.85 billion tranche (“Tranche 2”) that matures three years after funding. Under the Term Loan Credit Agreement, borrowings will bear interest on the principal amount outstanding at a floating rate based on, at Synopsys’ election, (i) the Adjusted Term SOFR Rate (as defined in the Term Loan Credit Agreement) plus an applicable margin based on the credit ratings of Synopsys ranging from 0.875% to 1.375% (in the case of Tranche 1) or 1.000% to 1.500% (in the case of Tranche 2) or (ii) the ABR (as defined in the Term Loan Credit Agreement) plus an applicable margin based on the credit ratings of Synopsys ranging from 0.000% to 0.375% (in the case of Tranche 1) or 0.000% to 0.500% (in the case of Tranche 2). On May 14, 2024, a ticking fee began to accrue under the Term Loan Credit Agreement in an amount equal to a rate per annum equal to 0.10% times the actual daily undrawn portion of the commitments in respect of the term loan facility. This ticking fee will accrue to but excluding the earlier of (i) termination or expiration of the commitments under the term loan facility or (ii) the funding of the commitments, at which point the accrued amount would be payable