Summary
This Form 8-K filing from Equifax Inc. (EFX) on May 25, 2018, announces the successful completion of a public offering of senior notes. The company issued $300 million in 3.600% Senior Notes due 2021, $400 million in 3.950% Senior Notes due 2023, and $300 million in Floating Rate Notes due 2021, totaling $1 billion in aggregate principal amount. The net proceeds of approximately $986.9 million will be utilized to reduce existing debt obligations, including borrowings under its term loan facility and commercial paper program, and for general corporate purposes.
Key Highlights
- 1Equifax Inc. successfully raised $1 billion through a public offering of senior notes and floating rate notes.
- 2The offering comprises $300 million of 3.600% Senior Notes due 2021, $400 million of 3.950% Senior Notes due 2023, and $300 million of Floating Rate Notes due 2021.
- 3Net proceeds from the offering are approximately $986.9 million.
- 4Proceeds are earmarked for repaying existing debt, including a three-year delayed draw term loan and commercial paper.
- 5The company also intends to use proceeds for general corporate purposes, potentially including its revolving credit facility.
- 6The fixed-rate notes have staggered maturity dates in 2021 and 2023, with specific interest rates and semi-annual payment schedules.
- 7Floating Rate Notes are tied to three-month LIBOR plus 0.87% and mature in 2021 with quarterly interest payments.
Frequently Asked Questions
Equifax Inc. is issuing these notes to strengthen its balance sheet by repaying existing debt, including borrowings under its term loan facility and commercial paper program. The funds will also be used for general corporate purposes.
The offering includes $300 million of 3.600% Senior Notes due 2021, $400 million of 3.950% Senior Notes due 2023, and $300 million of Floating Rate Notes due 2021. The fixed-rate notes have semi-annual interest payments, while the floating rate notes are linked to LIBOR plus 0.87% with quarterly payments.
Equifax Inc. raised a total of $1 billion in aggregate principal amount from the issuance of the senior notes and floating rate notes. After deducting underwriting discounts and expenses, the net proceeds are approximately $986.9 million.
Yes, Equifax has the option to redeem the 2021 and 2023 Senior Notes prior to maturity under specific conditions and at defined redemption prices. However, the company does not have the right to redeem the Floating Rate Notes.