Equifax 2008 Annual Report Download - page 25

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Financing Activities
Borrowings and Credit Facility Availability
Net cash provided by (used in): Twelve Months Ended December 31, Change
(Dollars in millions) 2008 2007 2006 2008 vs. 2007 2007 vs. 2006
Net short-term (repayments) borrowings $ (184.8) $ 139.7 $ (12.2) $ (324.5) $ 151.9
Net borrowings (repayments) under
long-term revolving credit facilities $ 45.0 $ 253.4 $ (40.0) $ (208.4) $ 293.4
Payments on long-term debt $ (17.8) $ (250.0) $ — $ 232.2 $ (250.0)
Proceeds from issuance of long-term debt $ 2.3 $ 545.7 $ — $ (543.4) $ 545.7
Credit Facility Availability. Equifax’s $850.0 million variable-rate debt, consisting of commercial paper notes
five-year unsecured revolving credit facility (which we refer and borrowings under our credit facilities, generally bears
to as the Senior Credit Facility), with a group of banks interest based on a specified margin plus a base rate
expires in July 2011. (LIBOR) or on commercial paper rates. The interest rates
reset periodically, depending on the terms of the respective
Our $850.0 million commercial paper program has been financing arrangements. At December 31, 2008, interest
established to allow for borrowing through the private rates on our variable-rate debt ranged from 1.7% to 2.4%.
placement of commercial paper notes. Maturities of com-
mercial paper can range from overnight to 397 days. The Borrowing and Repayment Activity. Net short-term
commercial paper program is supported by our Senior (repayments) borrowings during 2008 and 2007 primarily
Credit Facility and, pursuant to our existing Board of Direc- represent activity under our commercial paper program,
tors authorization, the total amount of commercial paper which is backstopped by our Senior Credit Facility as
which may be issued is reduced by the amount of any described above, as well as activity under our Canadian
outstanding borrowings under our Senior Credit Facility. Credit Facility in 2008. In 2008, the activity in this balance
primarily reflects the net repayment of $216.5 million of the
In June 2008, we entered into a new 364-day revolving balance outstanding on our commercial paper notes at
credit agreement with a Canadian financial institution that December 31, 2007, offset by the increase of $25.8 million
replaced a previous credit facility with the bank; the permit- in borrowings under our Canadian Credit Facility. In 2007,
ted borrowings were increased from C$10.0 million net borrowing activity under our commercial paper program
(denominated in Canadian dollars) to C$40.0 million and was partially offset by net repayments under our trade
financial and other covenants were updated and con- receivables-backed revolving credit facility, which we
formed to those contained in our Senior Credit Facility. The elected to terminate on November 29, 2007. The 2006 net
new Canadian Credit Facility terminates in June 2009 and short-term (repayments) borrowings represent activity under
is available for general corporate purposes. our trade receivables-backed revolving credit facility.
At December 31, 2008, $420.0 million was outstanding Net borrowings (repayments) under long-term revolving
under the Senior Credit Facility, which is included in credit facilities during 2008, 2007 and 2006 relate to activ-
long-term debt on our Consolidated Balance Sheet; and ity on our Senior Credit Facility. Borrowings may be used
$25.8 million was outstanding under our short-term Cana- for general corporate purposes, including working capital,
dian Credit Facility; and $3.0 million in commercial paper capital expenditures, acquisitions and share repurchase
notes was outstanding. The weighted-average interest rate programs. In 2008, the net borrowing activity under
on these borrowings, all with maturities less than 90 days, long-term revolving credit facilities primarily represents our
was 2.1% per annum. At December 31, 2008, a total of pay down of $216.5 million of commercial paper notes out-
$434.0 million was available under our committed credit standing at December 31, 2007 from cash from operations
facilities. Although outstanding commercial paper borrow- and borrowings under our Senior Credit Facility to lower
ings at December 31, 2008 were significantly less than the the average cost of our debt and due to the adverse con-
$219.5 million of borrowings outstanding at December 31, ditions in the commercial paper market discussed above.
2007, this decrease was driven by our effort to lower the In 2007, the net borrowing activity under long-term revolv-
effective cost of our variable rate borrowing by alternating ing credit facilities primarily represents our refinancing of the
borrowing under our Senior Credit Facility and through the $250.0 million principal amount relating to our 4.95% notes
commercial paper program, when available, based on the in November 2007. During 2008, we purchased $20.0 mil-
rates available to us. lion principal amount of the ten-year senior notes issued in
2007 for $14.3 million. There were no material payments
At December 31, 2008, approximately 63% of our debt
on long-term debt during 2006.
was fixed-rate debt and 37% was variable-rate debt. Our
2008 ANNUAL REPORT 23