SAN JOSE, Calif. -- Oct. 19, 2009 -- Magma(R) Design Automation Inc. (Nasdaq:LAVA), a provider of chip design software, announced today it 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.
Magma's electronic design automation (EDA) software is used to create complex, high-performance integrated circuits (ICs) for cellular telephones, electronic games, WiFi, MP3 players, DVD/digital video, networking, automotive electronics and other electronic applications. Magma products for IC implementation, analog/mixed-signal design, analysis, physical verification, circuit simulation and characterization are recognized as embodying the best in semiconductor technology, providing the world's top chip companies the "Fastest Path to Silicon"(TM). Magma 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. Visit Magma Design Automation on the Web at www.magma-da.com.