Citrix 2006 Annual Report Download - page 48

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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 us 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 the London Interbank Offered Rate, or
LIBOR, plus 0.32% and adjusts in the future in the range
of 0.32% to 0.80% above LIBOR based on the level of our
total debt and our adjusted earnings before interest, taxes,
depreciation and amortization, or EBITDA. In addition,
we are required to pay an annual 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 our
total debt and adjusted EBITDA. During the year ended
December 31, 2006, no funds were borrowed under the
Credit Facility, as amended, and as of December 31, 2006
there were no amounts outstanding under the Credit
Facility, as amended.
Our credit facility agreement contains a number of
affirmative and negative covenants. Because of delays in
filing our Annual Report on Form 10-K for the year ended
December 31, 2006, our Quarterly Report on Form 10-Q
for the three months ended March 31, 2007 and our
Quarterly Report on Form 10-Q for the three months
ended June 30, 2007, we were at risk of breaching the
affirmative covenant requiring certain financial statements
to be provided to our Lenders within 90 days after the
end of our fiscal year and 45 days after the end of our
fiscal quarters. We received waivers related to these
covenant breaches to extend the due date of such financial
statements until September 30, 2007. We have notified our
Lenders that we will provide such financial statements by
the extension date.
Effective on August 9, 2005, we entered into the Term Loan
with the Lenders. The Term Loan provided for an eighteen-
month single-draw term loan facility in the aggregate
amount of $100.0 million. The Term Loan’s interest rate
was LIBOR plus 0.5% and adjusted in the range of 0.5%
to 1.25% above LIBOR based on the level of our total debt
and adjusted EBITDA. In addition, we were required to pay
an annual facility fee ranging from 0.125% to 0.25% based
on the aggregate amount of the Term Loan and the level of
our total debt and adjusted EBITDA. We used the proceeds
from the Term Loan to partially fund the repatriation of
certain of our foreign earnings in connection with the
AJCA. For more information related to our long-term debt
and the AJCA, see Notes 9 and 12 of our consolidated
financial statements included elsewhere in this Annual
Report and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations – Results
of Operations.” In February 2006, we repaid the remaining
$31.0 million outstanding under the Term Loan in full.
Stock Repurchase Program
Our Board of Directors has authorized an ongoing stock
repurchase program with a total repurchase authority
granted to us of $1.5 billion, of which $200 million was
authorized in February 2006 and $300 million was
authorized in October 2006. We may use the approved
dollar authority to repurchase stock at any time until the
approved amounts are exhausted. The objective of our
stock repurchase program is to improve stockholders’
return. At December 31, 2006, approximately $293.4 million
was available to repurchase shares of our common stock
pursuant to the stock repurchase program. All shares
repurchased are recorded as treasury stock.
We are authorized to make open market purchases of our
common stock using general corporate funds. Additionally,
during 2006 and 2005, we entered into structured stock
repurchase arrangements with large financial institutions
using general corporate funds as part of our stock
repurchase program in order to lower the average cost
to acquire shares. These programs include terms that
require us to make up-front payments to the counterparty