PTC Inc. (PTC, Financial), a leading software and services company, has announced a significant amendment to its existing credit agreement, aimed at bolstering its financial flexibility. On October 1, 2024, PTC and its subsidiary, PTC (IFSC) Limited, entered into Amendment No. 1 to the Fourth Amended and Restated Credit Agreement, originally dated January 3, 2023. This amendment was executed in collaboration with JPMorgan Chase Bank, N.A., serving as the Administrative Agent, along with other lenders involved in the agreement.
The key highlight of this amendment is the modification of the "Springing Maturity Date" definition. The amendment stipulates that the Springing Maturity Date, which is the date when all outstanding amounts under the Credit Agreement would become due if PTC's 2025 Senior Notes remain outstanding, will not occur on November 16, 2024, provided that PTC's Available Liquidity is equal to or exceeds $600 million on that date.
Furthermore, the amendment introduces a new definition for "Available Liquidity," which encompasses cash, Cash Equivalent Investments, readily-marketable securities, and Available Revolving Commitments under the Credit Agreement. This strategic move is designed to ensure that PTC maintains robust liquidity levels, thereby enhancing its ability to manage financial obligations effectively.
PTC's proactive approach in amending its credit agreement underscores its commitment to maintaining a strong financial position and optimizing liquidity management. The full text of Amendment No. 1 to the Credit Agreement is available as Exhibit 10.1, providing detailed insights into the terms and conditions of this strategic financial maneuver.
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