Chicago, Feb. 15 – FactSet Research Systems Inc. sold a $1 billion two-part offering of senior notes (Baa3//BBB) on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $500 million of 2.9% five-year senior notes at 99.829 to yield 2.937%, or at a spread of Treasuries plus 100 basis points.
A 10-year tranche, also for $500 million, priced with a 3.45% coupon at 99.606 to yield 3.497%. The spread was 145 bps over Treasuries.
There will be an optional make-whole call at Treasuries plus 15 bps for the five-year notes and Treasuries plus 25 bps for the 10-year notes, in both cases followed by a par call date.
BofA Securities, Inc. and PNC Capital Markets LLC are listed as joint bookrunners.
Proceeds, with borrowings under a new term facility and cash on hand, will be used to finance the acquisition of the Cusip Global Services division from S&P Global Inc. The notes will also be used to repay borrowings under the company’s 2019 revolving credit facility.
There is a special redemption of the notes at 101 if the acquisition is not completed by Dec. 24, 2022.
FactSet is a financial data and analytics company. Headquarters are in Norwalk, Conn.
| Issuer: | FactSet Research Systems Inc.
|
| Amount: | $1 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc. and PNC Capital Markets LLC
|
| Co-manager: | HSBC Securities (USA) Inc.
|
| Trustee: | U.S. Bank Trust Co. NA
|
| Counsel to issuer: | Cravath, Swaine & Moore LLP
|
| Counsel to bookrunners: | Cahill Gordon & Reindel LLP
|
| Trade date: | Feb. 15
|
| Settlement date: | March 1
|
| Ratings: | Moody’s: Baa3
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2027
|
| Coupon: | 2.9%
|
| Price: | 99.829
|
| Yield: | 2.937%
|
| Spread: | Treasuries plus 100 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps; par call starting Feb. 1, 2027
|
| Change of control: | At 101
|
| Cusip: | 303075AA3
|
|
|
| 10-year notes
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| Amount: | $500 million
|
| Maturity: | March 1, 2032
|
| Coupon: | 3.45%
|
| Price: | 99.606
|
| Yield: | 3.497%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps; par call starting Dec. 1, 2031
|
| Change of control: | At 101
|
| Cusip: | 303075AB1
|
|
|
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