8-KMaterial AgreementsFinancial EventsExhibits & Filings

EQUIFAX INC 8-K Report, Material Agreement (May 23, 2007)

Filed May 23, 2007For Securities:EFX

Summary

Equifax Inc. (EFX) announced the establishment of a new $850 million commercial paper program on May 22, 2007. This program allows the company to issue unsecured commercial paper notes to fund general corporate purposes, including working capital, capital expenditures, acquisitions, and share repurchases. The program is intended to serve as an alternative funding source and is backstopped by the company's existing $850 million revolving credit facility, providing a liquidity backup if commercial paper funding is not available on favorable terms. Initially, Equifax plans to issue $400 million in commercial paper to repay existing borrowings under its credit agreement. This initiative diversifies Equifax's funding sources and enhances financial flexibility. The commercial paper notes will have maturities of up to 397 days and will be issued at a discount or bear interest based on various market rates. Banc of America Securities LLC and SunTrust Capital Markets, Inc. are acting as dealers for the program.

Key Highlights

  • 1Establishment of an $850 million commercial paper program for general corporate purposes.
  • 2Program is unsecured and allows for issuance of notes with maturities up to 397 days.
  • 3Funding flexibility for working capital, capital expenditures, acquisitions, and share repurchases.
  • 4Backstopped by an existing $850 million senior unsecured revolving credit facility.
  • 5Initial issuance of $400 million in commercial paper to repay existing credit facility borrowings.
  • 6Banc of America Securities LLC and SunTrust Capital Markets, Inc. appointed as dealers.
  • 7The program does not represent an increase in the company's overall debt.

Frequently Asked Questions

The primary purpose of the new $850 million commercial paper program is to provide Equifax with an additional and flexible source of funding for general corporate purposes. This includes managing working capital, financing capital expenditures, supporting potential acquisitions, and executing share repurchase programs.

The commercial paper program is backstopped by Equifax's existing $850 million senior unsecured revolving credit facility. This means the credit facility can be used to provide funds if commercial paper financing is not available on favorable terms. The company plans to initially use proceeds from the commercial paper to repay borrowings under this credit facility, demonstrating a strategic shift in its short-term funding.

According to the filing, the Board of Directors has authorized the program to serve as an alternative source of funding but explicitly states that it is not intended as an increase to the company's overall debt. It appears to be a refinancing or restructuring of existing debt capacity.

The commercial paper notes can have maturities of up to 397 days from the date of issue. They will be sold at a discount from par or at par with interest rates that will vary based on market conditions at the time of issuance. These rates can be fixed or floating, tied to benchmarks like CD rates, commercial paper rates, federal funds rate, LIBOR, prime rate, or treasury rates.