Equifax 2009 Annual Report Download - page 27

margin plus a base rate (LIBOR) or on CP rates for investment On November 4, 2009, we issued $275.0 million principal amount
grade issuers. The interest rates reset periodically, depending on the of 4.45%, five-year senior notes in an underwritten public offering.
terms of the respective financing arrangements. At December 31, We used the net proceeds from the sale of the senior notes to
2009, interest rates on our variable-rate debt ranged from 0.3% to repay amounts outstanding under our CP program, a portion of
2.0%. which was used to finance our fourth quarter 2009 acquisitions. In
conjunction with our 2009 sale of five-year senior notes, we entered
into five-year interest rate swaps, designated as fair value hedges,
Borrowing and Repayment Activity. Net short-term borrowings
which convert the debt’s fixed interest rate to a variable rate.
(repayments) primarily represent activity under our CP program, as
well as activity under our Canadian short-term revolving credit
agreement. Net (repayments) borrowings under long-term revolving On June 28, 2007, we issued $300.0 million principal amount of
credit facilities relates to activity on our Senior Credit Facility. We 6.3%, ten-year senior notes and $250.0 million principal amount of
primarily borrow under our CP program, when available. 7.0%, thirty-year senior notes in underwritten public offerings. We
used a portion of the net proceeds from the sale of these senior
notes to reduce the outstanding amount of our CP. In conjunction
The increase in net short-term borrowings (repayments) in 2009 pri-
with the sale of the 6.3% and 7.0% senior notes, we entered into
marily reflects the net issuance of $132.0 million of CP notes since
cash flow hedges on $200.0 million and $250.0 million notional
December 31, 2008, offset by the repayment of $25.8 million under
amount, respectively, of ten-year and thirty-year treasury notes.
our Canadian Credit Facility. In 2008, the activity in this balance
These hedges were settled in cash on June 25 and 26, 2007,
primarily reflects the net repayment of $216.5 million of the balance
respectively, the date the senior notes were sold, requiring a cash
outstanding on our CP notes at December 31, 2007, offset by the
payment by us of $1.9 million and $3.0 million, respectively. There
increase of $25.8 million in borrowings under our Canadian Credit
were no material proceeds from the issuance of long-term debt dur-
Facility. In 2007, net borrowing activity under our CP program was
ing 2008.
partially offset by net repayments under our trade receivables-
backed revolving credit facility, which we elected to terminate on
November 29, 2007. Debt Covenants. Our outstanding indentures and comparable
instruments contain customary covenants including for example lim-
its on secured debt and sale/leaseback transactions. In addition, our
The increase in net (repayments) borrowings for 2009 under
Senior Credit Facility and Canadian Credit Facility each require us to
long-term revolving credit facilities represents the repayment of bor-
maintain a maximum leverage ratio of not more than 3.5 to 1.0, and
rowings outstanding at December 31, 2008, under our Senior Credit
limit the amount of subsidiary debt. Our leverage ratio was 2.09 at
Facility as we increased our use of CP to fund our capital needs. In
December 31, 2009. None of these covenants are considered
2008, the net borrowing activity under long-term revolving credit
restrictive to our operations and, as of December 31, 2009, we
facilities primarily represents our pay down of $216.5 million of CP
were in compliance with all of our debt covenants.
outstanding at December 31, 2007 from cash from operations and
borrowings under our Senior Credit Facility to lower the average
cost of our debt and due to the adverse conditions in the CP mar- We do not have any credit rating triggers that would accelerate the
ket. In 2007, the net borrowing activity under long-term revolving maturity of a material amount of our outstanding debt; however, our
credit facilities primarily represents our refinancing of the $250.0 mil- senior notes, discussed above, contain change in control provisions.
lion principal amount relating to our 4.95% senior notes which If we experience a change of control or publicly announce our inten-
matured in November 2007. tion to effect a change of control and the rating on the senior notes
is lowered by Standard & Poor’s, or S&P, and Moody’s Investors
Service, or Moody’s, below an investment grade rating within
In 2009, we purchased $7.5 million principal amount of our out-
60 days of such change of control or notice thereof, then we will be
standing ten-year senior notes due 2017 for $6.3 million and
required to offer to repurchase the senior notes at a price equal to
$25.0 million principal amount of our outstanding debentures due
101% of the aggregate principal amount of the senior notes plus
2028 for $25.1 million. During 2008, we purchased $20.0 million
accrued and unpaid interest.
principal amount of the ten-year senior notes due 2017 for
$14.3 million.
EQUIFAX 2009 ANNUAL REPORT 25
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