FactSet inks $1.5B pro rata facility for CUSIP Global Services acquisition

FactSet Research Systems Inc. disclosed that on March 1 the company entered into a pro rata credit facility that includes a $1 billion term loan A due March 2025 and a $500 million revolver due March 2027. The facility will be used alongside a recently inked $1 billion offering of senior notes in connection with the company's $1.925 billion acquisition of CUSIP Global Services, which has been completed.

Pricing is tied to a ratings- or leverage-based grid and benchmarked to the secured overnight financing rate, at Sofr+87.5-162.5, opening at Sofr+100, with a 0% floor. Pricing also includes a credit spread adjustment of 10 basis points.

PNC Capital Markets and BofA Securities acted as joint lead arrangers and joint bookrunners. PNC is administrative agent.

On March 1, the company drew the full amount under the $1 billion term loan and $250 million under the revolver, using proceeds alongside the notes and cash on hand to back the acquisition and to repay borrowings under a 2019 credit agreement.

The credit agreement is covered by a leverage ratio set at 4x through Aug. 31, 2023, with steps to 3.75x through Aug. 31, 2024, and 3.5x thereafter. It is also covered by an interest coverage ratio set at 3x.

FactSet Research Systems is a financial data and analytics company. The company is rated Baa3 by Moody's and BBB by Fitch.