CoreLogic to close on $850 million term loan, $550 million revolver

By Marisa Wong

Madison, Wis., Sept. 19 - CoreLogic, Inc. and CoreLogic Australia Pty. Ltd. entered into a credit agreement with Bank of America, NA as administrative agent for an $850 million five-year term loan facility and a $550 million five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolving credit facility includes a $100 million multicurrency revolving subfacility and a $50 million letter-of-credit subfacility.

The entire credit facility may be increased by up to $500 million total.

Initial borrowings under the new facility are subject to the consummation of an acquisition and the termination of the company's existing credit agreement dated May 23, 2011. The new credit agreement will terminate on Dec. 31 if these conditions are not met by that date, or on March 31, 2014 if the date of the acquisition is extended.

The company will pay a ticking fee to lenders for the period from and including Sept. 15 to and excluding the earlier of (a) the closing date, which is the date when the conditions above are satisfied; (b) the commitment termination date; and (c) if applicable, the date the company elects to voluntarily terminate the commitments.

The ticking fee will accrue at a rate of 0.25% per year, stepping up to 0.75% on Jan. 1 if applicable.

Loans under the new facility will bear interest at Libor plus the applicable rate, which is initially 175 basis points. Beginning with the second full fiscal quarter after the closing date, the applicable rate will range from 125 basis points to 250 bps.

After the closing date, the company will also be required to pay a commitment fee of 25 bps to 50 bps, depending on the leverage ratio.

Term loans are to be repaid in quarterly installments of $10,625,000 for the first eight quarters, $21.25 million for the next four quarters and $31,875,000 for the four quarters after that. The outstanding balance of the term loan will be due at maturity.

The term loan is also subject to prepayment with cash proceeds from debt issues or asset sales.

The credit agreement contains financial maintenance covenants, including:

• A maximum total leverage ratio as of the last date of any fiscal quarter not to exceed 4.25 to 1, provided that such total leverage ratio shall step down to 4 to 1 starting with the fiscal quarter ending on June 30, 2014 and 3.5 to 1 starting with the fiscal quarter ending on June 30, 2015, and

• A minimum interest coverage ratio for the four-fiscal quarter period ending on the last day of any fiscal quarter of at least 3 to 1.

Until the existing credit agreement is terminated upon closing of the new credit agreement, the old facility will remain in effect, the filing noted.

The Irvine, Calif.-based company provides financial, property and consumer information and analytics.

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