FICO Announces Pricing of $550 Million in Senior Notes

Rhea-AI Summary

Fair Isaac Corporation (NYSE: FICO) has priced $550 million in additional notes, complementing its existing $350 million 4.000% Senior Notes due 2028. The offering, expected to close on December 17, 2021, is intended to repay existing debt under its revolving credit facility. The notes will be sold to qualified institutional buyers and are exempt from registration under the Securities Act. Key risks include market conditions and the potential impacts of COVID-19 on their business performance.

Positive

• Pricing of additional notes at $550 million indicates strong market interest.
• Proceeds will be used to repay existing credit facility, improving financial leverage.

Negative

• Dependence on market conditions and potential risks related to COVID-19 may affect stock performance.

BOZEMAN, Mont., Dec. 14, 2021 /PRNewswire/ -- Fair Isaac Corporation (NYSE: FICO) announced today that it priced $550 million in aggregate principal amount of additional notes (the "Additional Notes") of the same class as its outstanding $350 million aggregate principal amount of 4.000% Senior Notes due 2028 that were issued on December 6, 2019 (the "Existing Notes") in a private offering that is exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). The Additional Notes will be issued pursuant to the indenture governing the Existing Notes. Further, the Additional Notes will have the same CUSIP number and ISIN as (except that Additional Notes issued pursuant to Regulation S will trade separately under a different CUSIP number and ISIN until at least 40 days after the issue date of the Additional Notes and thereafter, subject to the terms of the indenture governing the notes and the applicable procedures of the depositary), and to be fungible for trading purposes with the Existing Notes. The Additional Notes were priced to investors at 99.750% of their principal amount and are senior unsecured obligations of FICO.

FICO intends to use the net proceeds from the offering of the Additional Notes to repay certain indebtedness outstanding under its existing revolving credit facility and to pay related fees and expenses.

FICO expects to close on the sale of the Additional Notes on December 17, 2021, subject to customary closing conditions.

The Additional Notes are being sold to qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act and outside the United States to non-U.S. persons in reliance on the exemption from registration set forth in Regulation S under the Securities Act. The Additional Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sales of the Additional Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press release is being issued pursuant to, and in accordance with, Rule 135(c) under the Securities Act.

Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks related to the offering of the Additional Notes, the success of FICO's Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, the impact of COVID-19 on macroeconomic conditions and FICO's business, operations and personnel, and other risks described from time to time in FICO's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended September 30, 2021 and any subsequent Quarterly Reports on Form 10-Q. If any of these risks or uncertainties materialize, FICO's results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.

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SOURCE FICO

FAQ

What is the amount of additional notes issued by FICO?

FICO has issued $550 million in additional notes.

When will FICO close the sale of the additional notes?

The sale is expected to close on December 17, 2021.

What is the purpose of the $550 million additional notes issued by FICO?

The proceeds will be used to repay certain indebtedness under its existing revolving credit facility.

What are the risks associated with FICO's additional notes offering?

Risks include market conditions and the impact of COVID-19 on FICO's business operations.

What type of buyers are eligible for FICO's additional notes?

The additional notes are sold to qualified institutional buyers.