8-KMaterial AgreementsFinancial EventsExhibits & Filings

EQUIFAX INC 8-K Report, Material Agreement (Aug 31, 2021)

Filed August 31, 2021For Securities:EFX

Summary

Equifax Inc. (EFX) has entered into new significant financing agreements, replacing its existing credit facility. On August 25, 2021, the company finalized a $1.5 billion unsecured revolving credit facility (Revolver) with a five-year term, which replaces their previous $1.1 billion facility that was set to mature in September 2023. This new facility offers increased borrowing capacity and flexibility, including provisions for foreign currency loans and the ability to request additional commitments up to $500 million. In conjunction with the Revolver, Equifax also secured a $700 million unsecured delayed draw term loan facility (Term Facility), also with a five-year term. This facility is primarily intended to finance acquisitions, notably the acquisition of Appriss Insights, and for general corporate purposes. The company expects to draw the full amount of the Term Facility around the closing date of the Appriss acquisition. Both new facilities are unsecured and rank pari passu with other senior unsecured indebtedness, and include financial covenants primarily focused on maintaining a leverage ratio.

Key Highlights

  • 1Equifax entered into a new $1.5 billion unsecured revolving credit facility maturing in five years, replacing an existing $1.1 billion facility.
  • 2A new $700 million unsecured delayed draw term loan facility was also secured, maturing in five years, to fund acquisitions like Appriss Insights and for general corporate needs.
  • 3The new facilities provide increased aggregate borrowing capacity and financial flexibility for Equifax.
  • 4The Revolver allows for up to $150 million in swingline loans and $75 million in letters of credit.
  • 5The Term Facility is expected to be fully drawn to finance the acquisition of Appriss Insights.
  • 6Both facilities are unsecured and rank equally with the company's other senior unsecured debt.
  • 7Financial covenants, primarily a maximum leverage ratio, will be tested quarterly and adjust based on the Appriss acquisition and future acquisitions, with options to increase the ratio under certain conditions.

Frequently Asked Questions

Equifax has replaced its existing $1.1 billion revolving credit facility with a larger $1.5 billion revolving credit facility and has entered into a new $700 million delayed draw term loan facility. Both new facilities have a five-year term.

The $700 million Term Facility is primarily intended to finance acquisitions, specifically mentioning the acquisition of Appriss Insights, and for general corporate purposes. Equifax anticipates drawing the full amount for the Appriss acquisition.

The new facilities increase the company's overall borrowing capacity and provide more flexibility. The inclusion of financial covenants, particularly the leverage ratio, will require Equifax to manage its debt levels, with specific adjustments related to acquisitions.

Both the new Revolving Credit Agreement and the Term Loan Credit Agreement are unsecured. They rank on parity with Equifax's other senior unsecured indebtedness.