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FactSet gets $750 million revolver, repays $575 million bank debt
By Angela McDaniels
Tacoma, Wash., April 4 – FactSet Research Systems Inc. entered into a $750 million revolving credit facility due March 29, 2024, according to an 8-K filing with the Securities and Exchange Commission.
PNC Bank, NA, Bank of America, NA and HSBC Bank USA, NA are the lenders. PNC Capital Markets LLC is the lead arranger and bookrunner, PNC Bank is the administrative agent, and Bank of America, NA is the syndication agent.
The credit agreement allows FactSet to arrange for up to $500 million of additional borrowings, provided that any such request must be in a minimum amount of $25 million.
The initial interest rate is Libor plus 87.5 basis points. Interest is payable quarterly.
Debt issuance costs incurred by FactSet, such as legal costs to review the credit agreement, administrative agent fees and upfront lender fees, were about $900,000. FactSet said it capitalized these fees as loan origination fees, which will be amortized ratably over the term of the credit agreement.
The company borrowed $575 million of the revolver at closing on March 29 and used the proceeds to retire the $575 million of outstanding debt under its March 17, 2017 credit agreement with PNC Bank. The maturity date on the outstanding loan was March 17, 2020, and there were no prepayment penalties.
Proceeds may also be used for permitted acquisitions and general corporate purposes.
The credit agreement requires that FactSet must maintain a maximum consolidated net leverage ratio of 3.5 to 1.0. The cap can be increased to 4.0 to 1.0 for four consecutive quarters immediately following the completion of a permitted acquisition with a purchase price in excess of $200 million.
FactSet is a Norwalk, Conn.-based provider of financial information and analytics.
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