Equifax 2004 Annual Report Download - page 64

N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
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In July 2004, $249.9 million of our 6.3% Notes due 2005
became current. These notes are classifi ed as short-term
debt in our accompanying Consolidated Balance Sheets at
December 31, 2004. On July 1, 2005, we expect to retire our
6.3% notes by utilizing our cash fl ow from operations and by
borrowing under our revolving credit and asset secutritiza-
tion agreements.
In August 2004, we entered into a new fi ve-year, $500.0
million senior unsecured revolving credit agreement. The
new facility provides for a variable interest rate tied to a Base
Rate, LIBOR plus a specifi ed margin or competitive bid
options similar to those contained in the previous facility.
The new facility replaces a $465.0 million revolving credit
facility. Under our senior credit agreement, we must com-
ply with various fi nancial and non-fi nancial covenants. The
fi nancial covenants require us to maintain a leverage ratio,
consolidated funded debt divided by consolidated EBITDA
(as defi ned by the agreement) from the preceding four quar-
ters, of not more than 3.0 to 1.0 (raised to 3.25 to 1.0 for
four fi scal quarters if the CSC Put option described in Note
11 below is exercised) and a minimum interest coverage ratio
of consolidated EBITDA (as defi ned by the agreement) for
the preceding four quarters divided by consolidated inter-
est expense for the preceding four quarters, of not less than
4.0 to 1.0. Compliance with these fi nancial covenants is tested
quarterly on a rolling four quarter basis. At December 31,
2004, our maximum leverage ratio was 1.4 and our mini-
mum interest coverage ratio was 14.4. The non-fi nancial
covenants include limitations on liens, cross defaults sub-
sidiary debt, mergers, liquidations, asset dispositions and
acquisitions. Our borrowings under this facility, which have
not been guaranteed by any of our subsidiaries, are unse-
cured and will rank on parity in right of payment with all
of our other unsecured and unsubordinated indebtedness
from time to time outstanding. As of December 31, 2004,
$500.0 million was available and there were no borrowings
outstanding under this facility. As of December 31, 2004,
we were in compliance with our covenants under the senior
credit agreement.
In September 2004, we entered into a new trade receiv-
ables-backed revolving credit facility. Under the terms of
the transaction, a wholly-owned subsidiary of Equifax may
borrow up to $125.0 million, subject to borrowing base avail-
ability and other terms and conditions. Equifax will use the
net proceeds received from the sale of its trade receivables
to the subsidiary for general corporate purposes. The credit
facility has an expiration date of September 6, 2005, but
may be extended for an additional period of up to three
years if specifi ed conditions are satisfi ed. Loans will bear
interest at commercial paper rates, LIBOR or Base Rate
plus a specifi ed margin. Outstanding debt under the facil-
ity will be consolidated on our balance sheet for fi nancial
reporting purposes. As of December 31, 2004, $84.0 mil-
lion was available and no amounts were outstanding under
this facility.
In October 2002, we issued new 4.95% fi xed rate fi ve-year
senior unsecured notes with a face value of $250.0 million.
The notes, which expire in 2007, were sold at a discount of
$0.5 million. The discount, and related issuance costs, will
be amortized on a straight-line basis over the term of the
notes. Our $200.0 million 6.5% senior unsecured notes,
originally issued in 1993, matured in June 2003. We bor-
rowed $200.0 million under our revolving credit facility to
retire the maturing notes. The indebtedness evidenced by
our 4.95% senior unsecured notes, our 6.3% senior unse-
cured notes and our 6.9% senior unsecured debentures,
none of which has been guaranteed by any of our subsid-
iaries, is unsecured, and ranks on parity in right of payment
with all of our other unsecured and unsubordinated indebt-
edness from time to time outstanding.
Scheduled maturities of long-term debt during the fi ve
years subsequent to December 31, 2004, are as follows:
(in millions)
Amount
2005 $255.7
2006 –
2007 249.7
2008 –
2009 –
Thereafter 148.8
$654.2
Our short-term borrowings at December 31, 2004 and
2003, totaled $0.0 million and $21.5 million, respec-
tively, and consisted primarily of notes payable to banks.
These notes had a weighted-average interest rate of 1.8%
at December 31, 2003. One of our Canadian subsidiar-
ies had an unsecured, 364-day C$100.0 million revolving
credit facility that expired on September 30, 2004. The
agreement provided for borrowings tied to the Prime Rate,
Base Rate, LIBOR or Canadian Banker’s Acceptances,
and contains fi nancial covenants related to interest cover-
age, funded debt to cash fl ow and limitations on subsidiary
indebtedness. We guaranteed the indebtedness of our
Canadian subsidiary under this credit facility. The bank
agreed to carry the amounts outstanding under the facility