Fair Isaac amends credit facility to add $300 million term loan

By Marisa Wong

Los Angeles, Oct. 21 – Fair Isaac Corp. entered into an amendment on Oct. 20 to its second amended and restated credit agreement dated Aug. 19 with Wells Fargo Securities, LLC as lead arranger and bookrunner and Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment provides for a $300 million unsecured term loan that will mature on Aug. 19, 2026 with an option for the company to request additional incremental term loans.

The credit agreement also provides for a $600 million revolver.

The company is obligated to repay the initial term loan in consecutive quarterly installments equal to $3.75 million beginning March 31, 2022, subject to some adjustments.

The company may prepay, without premium or penalty, in whole or in part, the initial term loan and any incremental term loans.

The revolver, the initial term loan and any incremental term loans may be increased to an aggregate amount after the amendment date up to the greater of (a) 100% of EBITDA for the most recently ended four consecutive fiscal quarter period for which financial statements have been delivered under Section 6.1 of the credit agreement and (b) an amount which, 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 under the credit facility.

Interest on the initial term loan is calculated in a similar manner as interest for the revolver. The applicable margin for Eurodollar borrowings ranges from 100 to 175 basis points and is based on the company’s total leverage ratio. The benchmark is initially Libor but may be replaced.

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

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