Magma Design (LAVA) Renews Credit Line With More Favorable Terms
Magma(R) Design Automation Inc. (Nasdaq: LAVA) has renewed a credit line with Wells Fargo Bank. The new line replaces an existing $15 million credit facility, eliminates borrowing restrictions imposed by the prior facility and extends the term of the agreement.
"This new line of credit's favorable terms give us improved flexibility, and I believe indicate improved confidence in Magma's financial profile," said Magma Chief Financial Officer Peter S. Teshima. "Wells Fargo has been an excellent financial partner since 2003 and we are very pleased to continue this relationship."
Magma entered into an amendment to an existing credit agreement between Magma and Wells Fargo Bank on Oct. 9, 2009, resulting in a single revolving line of credit of $15 million that replaced two previous $7.5 million revolving lines of credit. It also eliminated borrowing restrictions based on Magma's level of accounts receivable and extended the term of the line of credit to Sept. 30, 2010. The line of credit was initiated in 2007. [SM]
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