FICO plans $1.5 billion senior notes offering

BOZEMAN, Mont. – Fair Isaac Corporation (NYSE: FICO), a $51 billion market cap company known for its analytics and decision-making services and boasting impressive gross profit margins of 81%, today announced its intention to offer $1.5 billion in Senior Notes due 2033 in a private offering. According to InvestingPro data, the company maintains a "GREAT" overall financial health score. These notes, which are senior unsecured obligations, will be offered to qualified institutional buyers and non-U.S. persons outside the United States, exempt from registration under the Securities Act of 1933.

FICO aims to use the proceeds from the sale of these notes to repay existing debts, including amounts owed under its unsecured revolving credit facility and unsecured term loans. The funds will also cover related fees and expenses, as well as support general corporate purposes. InvestingPro analysis shows FICO operates with moderate debt levels and maintains strong liquidity with a current ratio of 2.11, indicating healthy ability to meet short-term obligations.

The offering and sale of the notes will rely on exemptions from registration requirements, and as such, they have not been registered under the Securities Act or any state securities laws. FICO has clarified that the notes cannot be sold in the United States without registration or an applicable exemption from registration requirements. For deeper insights into FICO’s financial position and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

The company has made it clear that this press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. Furthermore, the sale of the notes will not take place in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

In addition to the announcement, FICO included a standard statement concerning forward-looking information. This disclaimer outlined the various risks and uncertainties that could cause actual results to differ from those projected, including the risks associated with the offering of the notes and general market conditions.

The information for this article is based on a press release statement from Fair Isaac Corporation.

In other recent news, Fair Isaac Corporation (FICO) reported its second-quarter earnings for fiscal year 2025, achieving a non-GAAP EPS of $7.81, which surpassed the analyst forecast of $7.40. However, the company’s revenue slightly missed expectations, coming in at $498.7 million compared to the forecasted $499.58 million. Despite the earnings beat, the market reacted negatively to the revenue shortfall. The company maintained its fiscal year 2025 guidance, projecting moderate expense increases and a rise in professional services revenue in the third quarter.

Additionally, Fair Isaac noted significant growth in mortgage origination revenues, which contributed to an overall 15% year-over-year increase in total revenue. The company’s GAAP net income also rose by 25% to $163 million, reflecting strong operational efficiency. Analysts from firms such as Barclays and Goldman Sachs inquired about the macroeconomic environment’s impact on Fair Isaac’s operations during the earnings call. The company acknowledged some uncertainty but remained confident in its guidance, citing a healthy software pipeline and strong ACV bookings as positive indicators.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.