SAN JOSE, Calif., March 23, 2010 (GLOBE NEWSWIRE) -- Magma® Design Automation Inc. (Nasdaq:LAVA), a provider of chip design software, announced today it has entered into an expanded credit line with Wells Fargo Capital Finance, LLC, part of Wells Fargo & Company (NYSE:WFC). The new $30 million credit facility consists of a $15 million term loan and a $15 million line of credit, and it replaces a $15 million credit facility the company entered into with Wells Fargo in October 2009.
"The expanded credit facility gives Magma the flexibility to take strategic financial steps to support the growth of its business," said Magma Chief Financial Officer Peter S. Teshima. "Having worked with Wells Fargo since 2003, we believe this indicates its confidence in Magma's prospects, and are very pleased to continue this relationship."
The term of the credit facility is 4 years with a floating interest rate based on LIBOR. The rate is currently approximately 5.5 percent per year. Magma drew the $15 million term loan at closing and repaid the outstanding line of credit to Wells Fargo. The company has not drawn on the line of credit portion of the new facility.
About Magma
Magma's electronic design automation (EDA) software provides the "Fastest Path to Silicon"™ and enables the world's top chip companies to create high-performance integrated circuits (ICs) for cellular telephones, electronic games, WiFi, MP3 players, digital video, networking and other electronic applications. Magma products are used in IC implementation, analog/mixed-signal design, analysis, physical verification, circuit simulation and characterization. The company maintains headquarters in San Jose, Calif., and offices throughout North America, Europe, Japan, Asia and India. Magma's stock trades on Nasdaq under the ticker symbol LAVA. Follow Magma on Twitter at www.Twitter.com/MagmaEDA and on Facebook at www.Facebook.com/Magma. Visit Magma Design Automation on the Web at www.magma-da.com.
Magma is a registered trademark and "Fastest Path to Silicon" is a trademark of Magma Design Automation Inc. All other product and company names are trademarks or registered trademarks of their respective companies.
Forward-looking statements:
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including but not limited to Magma's ability to keep pace with rapidly changing technology and the company's products' abilities to produce desired results. Further discussion of these and other potential risk factors may be found in Magma's public filings with the Securities and Exchange Commission (www.sec.gov). Magma undertakes no additional obligation to update these forward-looking statements.