Morningstar enters three-year $300 million amended, restated revolver

By Wendy Van Sickle

Columbus, Ohio, Nov. 8 – Morningstar, Inc. amended and restated its credit agreement with Bank of America, NA on Friday, providing for a three-year $300 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement amends and restates the company’s agreement dated July 18, 2014. It has a $25 million letters-of-credit sub-facility and expires on Nov. 4, 2019.

The interest rate is Libor plus a margin ranging from 100 basis points to 175 bps, depending on the company’s consolidated leverage ratio. The commitment fee ranges from 15 bps to 30 bps.

At closing, $60 million was outstanding under the credit agreement, and the company expects to draw additional borrowings under the revolver to fund its planned acquisition of the remaining ownership interest in PitchBook Data, Inc. for about $180 million and for working capital, capital expenditures and other corporate purposes.

Financial covenants include a maximum consolidated leverage ratio of 3 times and a minimum consolidated interest coverage ratio of 3 times.

Morningstar is an investment research and investment management firm based in Chicago.

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