Citrix 2009 Annual Report Download - page 111

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
9. LONG-TERM DEBT
Credit Facility
Effective on August 9, 2005, the Company entered into a revolving credit facility (the “Credit Facility”)
with a group of financial institutions (the “Lenders”). Effective September 27, 2006, the Company entered into
an amendment and restatement of its Credit Facility (the “Amendment”). The Amendment decreased the overall
range of interest rates the Company must pay on amounts outstanding on the Credit Facility and lowered the
facility fee. In addition, the Amendment extended the term of the Credit Facility. The Credit Facility, as
amended, allows the Company to increase the revolving credit commitment up to a maximum aggregate
revolving credit commitment of $175.0 million. The Credit Facility, as amended, currently provides for a
revolving line of credit that will expire on September 27, 2011 in the aggregate amount of $100.0 million, subject
to continued covenant compliance. A portion of the revolving line of credit (i) in the aggregate amount of $25.0
million may be available for issuances of letters of credit and (ii) in the aggregate amount of $15.0 million may
be available for swing line loans. The Credit Facility, as amended, currently bears interest at LIBOR plus 0.32%
and adjusts in the range of 0.32% to 0.80% above LIBOR based on the level of the Company’s total debt and its
adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) as defined in the agreement.
In addition, the Company is required to pay a quarterly facility fee ranging from 0.08% to 0.20% based on the
aggregate amount available under the Credit Facility, as amended, and the level of the Company’s total debt and
its adjusted EBITDA. Borrowings under the Credit Facility, as amended, are guaranteed by the Company and
certain of the Company’s U.S. and foreign subsidiaries, which guarantees are secured by a pledge of shares of
certain foreign subsidiaries. As of December 31, 2009, there were no amounts outstanding under the Credit
Facility, as amended.
The Credit Facility, as amended, contains customary default provisions, and the Company must comply with
various financial and non-financial covenants. The financial covenants consist of a minimum interest coverage
ratio and a maximum consolidated leverage ratio. The primary non-financial covenants contain certain limits on
the Company’s ability to pay dividends, conduct certain mergers or acquisitions, make certain investments and
loans, incur future indebtedness or liens, alter the Company’s capital structure or sell stock or assets. As of
December 31, 2009, the Company was in compliance with all covenants of the Credit Facility.
10. COMMITMENTS AND CONTINGENCIES
Leases
The Company leases certain office space and equipment under various operating leases. In addition to rent,
the leases require the Company to pay for taxes, insurance, maintenance and other operating expenses. Certain of
these leases contain stated escalation clauses while others contain renewal options. The Company recognizes rent
expense on a straight-line basis over the term of the lease, excluding renewal periods, unless renewal of the lease
is reasonably assured.
F-31