8-KOther EventsExhibits & Filings

EQUIFAX INC 8-K Report, Corporate Update (Aug 16, 2021)

Filed August 16, 2021For Securities:EFX

Summary

Equifax Inc. has announced the successful completion of a public offering of $1 billion in Senior Notes due 2031. These notes carry a coupon rate of 2.350% and mature in September 2031. The primary use of the net proceeds, approximately $988.7 million after fees, is to repay existing debt, specifically $300 million of 3.60% Senior Notes due 2021 and $300 million of Floating Rate Notes due 2021. The remaining funds are earmarked for general corporate purposes, which may include supporting its commercial paper program or funding strategic acquisitions, such as the recently announced $1.825 billion acquisition of Appriss Insights. This debt issuance reflects Equifax's proactive approach to managing its capital structure and funding strategic growth initiatives. By refinancing maturing debt with longer-term, lower-cost notes and preserving capital for potential acquisitions, the company is positioning itself for continued expansion and operational enhancement. Investors should note the specific terms of the new notes, including their redemption provisions and the stated use of proceeds, which provide clarity on the company's financial strategy.

Key Highlights

  • 1Equifax Inc. issued $1,000,000,000 aggregate principal amount of 2.350% Senior Notes due 2031.
  • 2The net proceeds from the offering are approximately $988.7 million after deducting underwriting discounts and expenses.
  • 3Proceeds will be used to repay $300 million of 3.60% Senior Notes due 2021 and $300 million of Floating Rate Notes due 2021.
  • 4Remaining proceeds are allocated for general corporate purposes, including potential acquisitions and commercial paper repayment.
  • 5The notes mature on September 15, 2031.
  • 6The company has the option to redeem the notes prior to maturity under specific conditions, including a make-whole provision until June 15, 2031, and at par thereafter.
  • 7This offering supports Equifax's financing of strategic initiatives, including the acquisition of Appriss Insights.

Frequently Asked Questions

Equifax is issuing $1 billion in Senior Notes due 2031 to refinance existing debt, specifically $300 million of its 3.60% Senior Notes due 2021 and $300 million of its Floating Rate Notes due 2021. The remaining proceeds will be used for general corporate purposes, which could include acquisitions or funding its commercial paper program.

The new Senior Notes have a coupon rate of 2.350% per year and will mature on September 15, 2031.

The net proceeds, approximately $988.7 million, will primarily be used to repay the aforementioned 2021 debt maturities. The balance will fund general corporate needs, potentially including the $1.825 billion acquisition of Appriss Insights.

Yes, Equifax has the option to redeem the notes. Prior to three months before maturity (i.e., before June 15, 2031), redemption can occur at a price based on present values of remaining payments (a 'make-whole' provision) plus accrued interest. From June 15, 2031, onwards, the company can redeem the notes at 100% of the principal amount plus accrued interest.