Item 1.01 Entry into a Material Definitive Agreement.
On August 29, 2014Avid Technology, Inc. (the "Company") entered into an
amendment (the "Amendment") to its Credit Agreement with Wells Fargo Capital
Finance LLC ("Wells Fargo") amending the Credit Agreement (the "Credit
Agreement") among the Company, certain direct and indirect subsidiaries of the
Company, and Wells Fargo, in its capacity as lender and as Administrative Agent.
The Amendment (i) extends the maturity of the Credit Agreement entered into
between the parties in October 2010 from October 1, 2014 to October 1, 2015,
(ii) changes the maximum amounts available under each of the revolving credit
facilities, and (iii) adds certain covenants, as described below.
Under the Amendment, the maximum amount available for the Company was increased
to $45.0 million (from $40.0 million) and the maximum amount available for its
subsidiary Avid Europe was decreased to $15.0 million (from $20.0 million). The
maximum amount available under the combined revolvers continues to be $60.0
million, subject to certain limitations on borrowing and other terms and
conditions as provided in the Credit Agreement filed as
The Amendment also requires the Company to comply with certain additional
covenants, including (i) achieving EBITDA (as defined in the Amendment) of $33.8
million for the year ending December 31, 2014, and (ii) not incurring more than
$16.0 million of capital expenditures (as defined in the Amendment) during the
year ending December 31, 2014.
The Amendment also requires the Company to deliver to Wells Fargo (i) its annual
report on Form 10-K for the fiscal year ended December 31, 2013 no later than
September 15, 2014, (ii) its quarterly report on Form 10-Q for the quarter ended
March 31, 2014 and preliminary financial statements for the six months ended
June 30, 2014, no later than September 22, 2014, and (iii) its quarterly report
on Form 10-Q for the quarter ended June 30, 2014, no later than November 3,
Furthermore, the Amendment requires that the Company's audited consolidated
financial statements for the fiscal years ended December 31, 2012 and 2013 as
well as the Company's unaudited consolidated financial statements for the three
months ended March 31, 2014 and the six months ended June 30, 2014, to be
delivered to Wells Fargo under the Credit Agreement, as amended, shall be
substantially similar, in all material respects, to the drafts thereof delivered
to Wells Fargo prior to the entry into the Amendment.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth under "Item 1.01. Entry into a Material Definitive
Agreement." of this Current Report on Form 8-K is incorporated herein by
Item 9.01. Financial Statements and Exhibits.
Amendment No. 13 dated August 29, 2014 to the Credit Agreement by
and among Avid Technology, Inc., Avid Technology International
B.V., Avid Systems, Inc., Avid General Partner B.V., each of the
lenders party thereto, and Wells Fargo Capital Finance, LLC, as
10.1 agent, dated October 1, 2010.