AVID TECHNOLOGY, INC. (NASDAQ:AVID) Files An 8-K Entry into a Material Definitive Agreement

AVID TECHNOLOGY, INC. (NASDAQ:AVID) Files An 8-K Entry into a Material Definitive Agreement

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Item 1.01. Entry into a Material Definitive Agreement.

On March 14, 2017 (the Effective Date), Avid Technology, Inc.
(the Company), its subsidiary, Avid Technology Worldwide, Inc.
(Avid Worldwide), and Cerberus Business Finance, LLC, as
collateral agent entered into an amendment (the Amendment) to its
existing financing agreement, dated February 26, 2016 (the
Financing Agreement), between the Company, Avid Worldwide,
Cerberus Business Finance, LLC, as collateral and administrative
agent, and the lenders party thereto.
The Amendment provides increased financial flexibility to Avid as
it completes its business transformation in 2017.
The Amendment modifies the covenant requiring the Company to
maintain a Leverage Ratio (defined to mean the ratio of (a)
consolidated total funded indebtedness to (b) consolidated
EBITDA) such that following the Effective Date, the Company is
required to keep a Leverage Ratio of no greater than 3.50:1.00
for the four quarters ending March 31, 2017, 4.20:1.00 for the
four quarters ending June 30, 2017, 4.75:1.00 for the four
quarters ending September 30, 2017, 4.80:1.00 for the four
quarters ending December 31, 2017, 4:40:1 for each of the four
quarters ending March 31, 2018 through March 31, 2019,
respectively, and thereafter declining over time from 3.50:1.00
to 2.50:1.00.
Following the Effective Date, interest accrues on outstanding
borrowings under the Credit Facility and the Term Loan (each as
defined in the Financing Agreement) at a rate of either the LIBOR
Rate (as defined in the Financing Agreement) plus 7.25% or a
Reference Rate (as defined in the Financing Agreement) plus
6.25%, at the option of the Company.
The foregoing description is qualified in its entirety by
reference to the Amendment, which is attached as Exhibit 10.1 to
this Current Report on Form 8-K and is incorporated herein by
reference. On March 15, 2017, the Company issued a press release
announcing the Amendment, a copy of which is attached hereto as
Exhibit 99.1 and incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
The disclosure required by this Item 2.03 is included in Item
1.01 above and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On March 20, 2017, the Company issued a press release announcing
the Amendment addressed in Item 1.01 of this Current Report. A
copy of the press release is attached hereto as Exhibit 99.1 and
incorporated herein by reference.
Limitation on Incorporation by Reference. The information
furnished in Item 2.02 and 7.01, including the press release
attached hereto as Exhibit 99.1, shall not be deemed filed for
purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (the Exchange Act), or otherwise subject to the
liabilities of that section, nor shall such information be deemed
incorporated by reference in any filing under the Securities Act
of 1933, as amended, or the Exchange Act, except as expressly set
forth by specific reference in such a filing.
Cautionary Note Regarding Forward-Looking Statements. Except for
historical information contained in this Form 8-K, the press
release attached as Exhibit 99.1 hereto, the Form 8-K and press
release contain forward-looking statements that involve certain
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by these statements.
Please refer to the cautionary notes in the press release
regarding these forward-looking statements.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number
Description
10.1
Amendment No. 1 to Financing Agreement, dated March 14,
2017
99.1
Press Release announcing Amendment No. 1 to Financing
Agreement, dated March 15, 2017


About AVID TECHNOLOGY, INC. (NASDAQ:AVID)

Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.

AVID TECHNOLOGY, INC. (NASDAQ:AVID) Recent Trading Information

AVID TECHNOLOGY, INC. (NASDAQ:AVID) closed its last trading session down -0.21 at 4.75 with 832,069 shares trading hands.

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