Fair Isaac restates $600 million five-year revolver

By Wendy Van Sickle

Columbus, Ohio, Aug. 19 – Fair Isaac Corp. amended and restated its credit agreement originally dated Dec. 30, 2014 on Thursday to provide for a $600 million five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Securities, LLC is the lead arranger and bookrunner. Wells Fargo Bank, NA is the administrative agent.

The revolver may be increased to an amount not to exceed the greater of (a) 100% of EBITDA for the most recently ended four consecutive fiscal quarter period for which financial statements have been delivered and (b) an amount that, after giving pro forma effect to the incurrence of such increase would not cause the total leverage ratio to exceed a ratio of 0.50 to 1.00 below the applicable maximum total leverage ratio covenant level then in effect.

Proceeds may be used to refinance outstanding debt, to repurchase shares of the company’s common stock, to provide for working capital and for general corporate purposes.

Borrowings will bear interest at a eurodollar rate plus a margin ranging from 100 basis points to 175 bps, based on the company’s total leverage ratio. The commitment fee ranges from 17.5 bps to 30 bps, also depending on total leverage ratio.

The company is required to maintain an interest coverage ratio of not less than 3.00 to 1.00 and a total leverage ratio of not more than 3.50 to 1.00, subject to a step up to 4.00 to 1.00 following certain permitted acquisitions.

Fair Isaac is a Minneapolis-based provider of predictive analytics solutions.

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