Summary
Equifax Inc. (EFX) announced a public offering of $700 million in aggregate principal amount of 5.100% Senior Notes due 2028. The net proceeds from this offering, estimated at approximately $692.1 million after expenses, are earmarked for significant strategic and financial objectives. A substantial portion will be used to repay $400 million of its maturing 3.95% Senior Notes due 2023. The remaining funds will support the acquisition of Boa Vista Serviços S.A. (BVS), a Brazilian consumer credit bureau, and/or be allocated for general corporate purposes, including potential commercial paper repayments.
Key Highlights
- 1Equifax successfully issued $700 million in 5.100% Senior Notes due 2028.
- 2Net proceeds of approximately $692.1 million will be used for debt repayment and strategic growth.
- 3The issuance aims to refinance $400 million of maturing 3.95% Senior Notes due 2023.
- 4A significant portion of proceeds will partially finance the acquisition of Brazilian consumer credit bureau Boa Vista Serviços S.A. (BVS).
- 5The BVS acquisition is expected to close in Q3 2023, subject to shareholder approval and closing conditions.
- 6The Notes carry a 5.100% annual interest rate, payable semi-annually on June 1 and December 1, with the first payment on December 1, 2023.
- 7The company has call options for early redemption, with specific provisions before and after May 1, 2028.
Frequently Asked Questions
The primary purposes are to repay $400 million of maturing 3.95% Senior Notes due 2023 and to partially finance the acquisition of Boa Vista Serviços S.A. (BVS), a Brazilian consumer credit bureau. Any remaining proceeds may be used for general corporate purposes, including commercial paper.
The new notes have a fixed interest rate of 5.100% per year, payable semi-annually. They mature on June 1, 2028.
The BVS acquisition is anticipated to be completed in the third quarter of 2023, subject to shareholder approval and other customary closing conditions.
Equifax expects to receive approximately $692.1 million in net proceeds after deducting underwriting discounts and estimated offering expenses.