The software firm boosts borrowing capacity by $500 million to fund acquisitions, buybacks, and capital expenditures amid AI-driven growth plans.
Autodesk Inc. (NASDAQ:ADSK) increased its revolving credit facility to $2 billion from $1.5 billion, finalizing the deal with a banking syndicate including Citibank and Morgan Stanley. The adjustment supports potential acquisitions, share repurchases, and working capital needs, with a zero percent rate floor tied to SOFR and flexible expansion provisions.
The move follows Autodesk’s $3.6 billion acquisition of MaintainX, its largest to date, which raised investor concerns over growth and profitability. RBC Capital recently lowered its price target on ADSK to $305 from $335 but maintained an Outperform rating, citing solid quarterly performance and leadership in industrial AI.
The expanded facility provides liquidity to absorb potential margin dilution risks projected for FY2027 and FY2029, aligning with the company’s long-term strategic goals.