Citrix 2007 Annual Report Download - page 61

Credit Facility and Term Loan
Effective on August 9, 2005, we entered into the Credit Facility with a group of financial institutions, or the
Lenders. Effective September 27, 2006, we entered into an amendment and restatement of the Credit Facility, or
the Amendment. The Amendment decreased the overall range of interest we will 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 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, 2007, no funds were
borrowed under the Credit Facility, as amended, and as of December 31, 2007 there were no amounts
outstanding under the Credit Facility, as amended.
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. 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 $1.8 billion, of which $300 million was authorized in January 2008. 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, 2007,
approximately $33.5 million was available to repurchase shares of our common stock pursuant to the stock
repurchase program. All shares repurchased are recorded as treasury stock. A significant portion of the funds
used to repurchase stock was provided by proceeds from employee stock option exercises and the related tax
benefit.
We are authorized to make open market purchases of our common stock using general corporate funds.
During 2007 and 2006, 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
financial institution and result in the receipt of stock during or at the end of the term of the agreement or the
receipt of either stock or cash at the maturity of the agreement, depending on market conditions. We did not enter
into any structured stock repurchase agreements or repurchase any shares of outstanding common stock during
our voluntary investigation of our historical stock option granting practices and related accounting.
We made up-front payments to financial institutions, net of cash and premiums received of approximately
$110.0 million in 2007 and $114.4 million in 2006 under our structured stock repurchase arrangements. In
addition, we received cash and premiums of approximately $40.0 million in 2007 and $41.8 million in 2006 from
expired prepaid programs based upon the terms of those agreements. We took delivery of 1,655,089 shares at an
55