FactSet Research Systems Inc. (FDS, Financial), a leading provider of integrated financial information and analytical applications, has announced a significant financial development. On April 8, 2025, the company entered into a new credit agreement with PNC Bank, National Association, acting as the administrative agent. This agreement introduces a senior unsecured term loan credit facility and a revolving credit facility, collectively amounting to $1.5 billion.
The credit facilities comprise a $500 million term loan, maturing on April 8, 2028, and a $1 billion revolving credit facility, maturing on April 8, 2030. The revolving facility offers flexibility with up to $100 million available in letters of credit and swingline loans. FactSet has the option to seek additional commitments up to $1 billion under this agreement.
FactSet utilized the $500 million term loan to repay borrowings under its previous 2022 credit agreement. The loans under the new facilities will bear interest based on various benchmarks, including Term SOFR, Daily Simple SONIA, and EURIBOR, with interest rate margins fluctuating based on the company's credit ratings or leverage ratio.
The agreement includes customary covenants and a financial covenant requiring a leverage ratio not exceeding 3.75 to 1.00, with a temporary increase allowed for certain acquisitions. FactSet retains the flexibility to prepay loans without penalties, and the agreement outlines standard default provisions.
This strategic move by FactSet aims to enhance its financial flexibility and support its growth initiatives, positioning the company for continued success in the competitive financial services industry.
Should you invest in FactSet Research Systems Inc (FDS, Financial) right now? Before you do it, it’s important to understand the business profitability and stock valuations, and find out what the warning signs are about. See the in-depth FactSet Research Systems Inc (FDS) stock research here.
