Fair Isaac gets $400 million five-year revolving loan via Wells Fargo

By Susanna Moon

Chicago, Dec. 31 – Fair Isaac Corp. obtained an unsecured $400 million five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into an amended credit agreement on Tuesday with Wells Fargo Securities, LLC and U.S. Bank NA as joint lead arrangers and joint bookrunners and U.S. Bank as syndication agent.

Wells Fargo Bank, NA is the administrative agent.

The facility may be increased to $500 million subject to terms and conditions.

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

Interest on the loans will be Libor plus 112.5 basis points initially and subsequently it can range from 100 basis points to 187.5 bps, based on leverage.

The company is required to maintain a fixed charge coverage ratio of at least 2.5 times and a total leverage ratio of no more than 3 times, subject to a step up to 3.5 times following certain permitted acquisitions.

The agreement also includes default provisions that include a change of control of the company or the company’s default on other debt exceeding $25 million. If an event of default occurs, interest will be increased by 2%.

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

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