Equifax 2009 Annual Report Download - page 57

CP Program. Our $850.0 million CP program has been established an underwritten public offering. Interest is payable semi-annually in
through the private placement of CP notes from time-to-time, in arrears on December 1 and June 1 of each year. We used the net
which borrowings bear interest at either a variable rate (based on proceeds from the sale of the senior notes to repay outstanding
LIBOR or other benchmarks) or a fixed rate, with the applicable rate borrowings under our CP program, a portion of which was used to
and margin. Maturities of CP can range from overnight to 397 days. finance our fourth quarter 2009 acquisitions. The senior notes are
Since the CP program is backstopped by our Senior Credit Facility, unsecured and rank equally with all of our other unsecured and
the amount of CP which may be issued under the program is unsubordinated indebtedness. In conjunction with the senior notes,
reduced by the outstanding face amount of any letters of credit we entered into five-year interest rate swaps, designated as fair
issued under the facility and, pursuant to our existing Board of value hedges, which convert the fixed interest rate to a variable rate.
Directors authorization, by the outstanding borrowings under our The long-term debt fair value adjustment related to these interest
Senior Credit Facility. At December 31, 2009, $135.0 million in CP rate swaps was a reduction of $3.3 million at December 31, 2009.
notes were outstanding, at a weighted-average fixed interest rate of
0.4% per annum, all with maturities of less than 90 days. 6.3% and 7.0% Senior Notes. On June 28, 2007, we issued
$300.0 million principal amount of 6.3%, ten-year senior notes and
4.25% Notes. Upon our July 26, 2007 acquisition of our Atlanta, $250.0 million principal amount of 7.0%, thirty-year senior notes in
Georgia, data center, we assumed a $12.5 million mortgage obliga- underwritten public offerings. Interest is payable semi-annually in
tion from the prior owner of the building. The mortgage obligation arrears on January 1 and July 1 of each year. The net proceeds of
has a fixed rate of interest of 4.25% per annum and is payable in the financing were used to repay short-term indebtedness, a sub-
annual installments until March 1, 2012. stantial portion of which was incurred in connection with our acqui-
sition of TALX. We must comply with various non-financial cove-
nants, including certain limitations on liens, additional debt and
TALX Debt. At the closing of the TALX acquisition in May 2007, we
mortgages, mergers, asset dispositions and sale-leaseback arrange-
assumed $75.0 million in 7.34% Senior Guaranteed Notes, or TALX
ments. The senior notes are unsecured and rank equally with all of
Notes, privately placed by TALX with several institutional investors in
our other unsecured and unsubordinated indebtedness. During
May 2006 and $96.6 million outstanding under TALX’s revolving
2009 and 2008, we purchased $7.5 million and $20.0 million,
credit facility. Subsequent to the TALX acquisition, we repaid and
respectively, principal amount of the ten-year senior notes for
terminated the TALX revolving credit facility with borrowings under
$6.3 million and $14.3 million, respectively.
our Senior Credit Facility. We are required to repay the principal
amount of the TALX Notes in five equal annual installments com-
mencing on May 25, 2010 with a final maturity date of May 25, In conjunction with the sale of the senior notes, we entered into
2014. We may prepay the TALX Notes subject to certain restrictions cash flow hedges on $200.0 million and $250.0 million notional
and the payment of a make-whole amount. Under certain circum- amount of ten-year and thirty-year Treasury notes, respectively.
stances, we may be required to use proceeds of certain asset dis- These hedges were settled on June 25 and June 26, 2007, the
positions to prepay a portion of the TALX Notes. Interest on the respective dates on which the Notes were sold, requiring payment
TALX Notes is payable semi-annually until the principal becomes of $1.9 million and $3.0 million, respectively. The impact of these
due and payable. We identified a fair value adjustment related to the settlements has been recorded in other comprehensive income and
TALX Notes in applying purchase accounting; this amount will be will be amortized with interest expense over the respective terms of
amortized against interest expense over the remainder of the term the Notes.
of the TALX Notes. At December 31, 2009, the remaining balance
of this adjustment is $2.8 million and is included in long-term debt 6.9% Debentures. During 2009, we purchased $25.0 million princi-
on the Consolidated Balance Sheet. pal amount of the debentures for $25.1 million.
4.45% Senior Notes. On November 4, 2009, we issued
$275.0 million principal amount of 4.45%, five-year senior notes in
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