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DEBT | 9 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
DEBT | DEBT Cadence’s outstanding debt was as follows:
| September 30, 2024 |  | December 31, 2023
| (In thousands)
| Principal |  | Unamortized Discount and Issuance Costs |  | Carrying Value |  | Principal |  | Unamortized Discount and Issuance Costs |  | Carrying Value
2024 Notes | 350,000 |  |  | (42) |  |  | 349,958 |  |  | 350,000 |  |  | (715) |  |  | 349,285 |
2025 Term Loan | — |  |  | — |  |  | — |  |  | 300,000 |  |  | (229) |  |  | 299,771 |
2027 Notes | 500,000 |  |  | (3,479) |  |  | 496,521 |  |  | — |  |  | — |  |  | — |
2029 Notes | 1,000,000 |  |  | (10,127) |  |  | 989,873 |  |  | — |  |  | — |  |  | — |
2034 Notes | 1,000,000 |  |  | (11,162) |  |  | 988,838 |  |  | — |  |  | — |  |  | — |
Total outstanding debt | $ | 2,850,000 |  |  | $ | (24,810) |  |  | $ | 2,825,190 |  |  | $ | 650,000 |  |  | $ | (944) |  |  | $ | 649,056 |
Senior Notes In October 2014, Cadence issued $350.0 million aggregate principal amount of 4.375% Senior Notes due October 15, 2024 (the “2024 Notes”). As of September 30, 2024 and December 31, 2023, the carrying value of the 2024 Notes was classified as a current liability on Cadence’s condensed consolidated balance sheet. As of September 30, 2024, the fair value of the 2024 Notes was approximately $349.6 million. Subsequent to the balance sheet date, on October 15, 2024, Cadence settled the outstanding principal of $350.0 million and accrued interest on its 2024 Notes. In September 2024, Cadence issued $500.0 million aggregate principal amount of 4.200% Senior Notes due September 10, 2027 (the “2027 Notes”). Cadence received net proceeds of $496.5 million from the issuance of the 2027 Notes, net of a discount of $0.1 million and issuance costs of $3.5 million. As of September 30, 2024, the fair value of the 2027 Notes was approximately $502.4 million. In September 2024, Cadence issued $1.0 billion aggregate principal amount of 4.300% Senior Notes due September 10, 2029 (the “2029 Notes”). Cadence received net proceeds of $989.8 million from the issuance of the 2029 Notes, net of a discount of $1.4 million and issuance costs of $8.8 million. As of September 30, 2024, the fair value of the 2029 Notes was approximately $1.0 billion. In September 2024, Cadence issued $1.0 billion aggregate principal amount of 4.700% Senior Notes due September 10, 2034 (the “2034 Notes,” and together with the 2027 Notes and the 2029 Notes, the “New Notes”, and together with the 2024 Notes, the “Senior Notes”). Cadence received net proceeds of $988.8 million from the issuance of the 2034 Notes, net of a discount of $1.9 million and issuance costs of $9.3 million. As of September 30, 2024, the fair value of the 2034 Notes was approximately $1.0 billion. Cadence may redeem the New Notes, in whole or in part, at any time or from time to time, at redemption prices specified in the governing indenture. In addition, Cadence may be required to repurchase New Notes upon occurrence of a change of control triggering event, as set forth in the governing indenture. The indentures governing Cadence’s Senior Notes include customary representations, warranties and restrictive covenants, including, but not limited to, restrictions on Cadence’s ability to grant liens on certain assets, enter into certain sale and lease-back transactions, or merge, consolidate or sell assets, and also includes customary events of default. Both the discount and issuance costs are being amortized to interest expense over the term of Cadence’s Senior Notes using the effective interest method. Interest is payable in cash semi-annually. Interest on the 2027 Notes, the 2029 Notes and the 2034 Notes is payable semi-annually in arrears in March and September of each year, beginning March 2025. Cadence’s Senior Notes are unsecured and rank equal in right of payment to all of Cadence’s existing and future senior indebtedness. As of September 30, 2024, Cadence was in compliance with all covenants associated with the Senior Notes. Term Loans In September 2022, Cadence entered into a $300.0 million three-year senior non-amortizing term loan facility due on September 7, 2025 with a group of lenders led by Bank of America, N.A., as administrative agent (the “2025 Term Loan”). Proceeds from the loan were used to fund Cadence’s acquisition of OpenEye Scientific Software, Inc. in fiscal 2022. Debt issuance costs associated with the 2025 Term Loan were not material. In May 2024, Cadence entered into a $700.0 million two-year senior non-amortizing term loan facility due on May 30, 2026 with a group of lenders led by Bank of America, N.A., as administrative agent (the “2026 Term Loan”). All proceeds from the 2026 Term Loan were used to finance Cadence’s acquisition of BETA CAE Systems International AG (“BETA CAE”). Debt issuance costs associated with the 2026 Term Loan were not material. In September 2024, Cadence used a portion of the net proceeds from the New Notes to fully prepay the outstanding principal and accrued interest of both the 2025 Term Loan and the 2026 Term Loan.

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