FICO prices $1.5 billion in senior notes due 2033

BOZEMAN, Mont. - Fair Isaac Corporation (NYSE: FICO), a $51.5 billion market cap company known for its analytics and credit scoring services, has priced senior notes amounting to $1.5 billion with a 6.000% yield, maturing in 2033. According to InvestingPro data, FICO maintains impressive gross profit margins of 80.8% and currently trades at $2,106.77 per share. Analysis from InvestingPro suggests the stock is trading above its Fair Value, placing it among other overvalued stocks in the market. The private offering, exempt from the Securities Act of 1933 registration, is scheduled to close on May 13, 2025, subject to standard closing conditions.

The company stated that the proceeds from the notes will be used to repay existing debts under its unsecured revolving credit facility and term loans. Additionally, the funds will cover related fees and expenses while providing for general corporate purposes. InvestingPro analysis shows FICO operates with a moderate level of debt and maintains strong liquidity with a current ratio of 2.11, indicating its liquid assets comfortably exceed short-term obligations.

These senior notes, which are unsecured obligations of FICO, were offered at 100% of their principal value to qualified institutional buyers, in accordance with Rule 144A, and to non-U.S. persons outside of the United States under Regulation S. The notes have not been registered under the Securities Act or any state securities laws, and unless they are registered, they may not be offered or sold in the U.S. without an exemption from registration requirements.

The sale of the notes is aimed at investors who are reasonably believed to be qualified institutional buyers and non-U.S. persons in compliance with the Securities Act exemptions. The issuance of this press release is in line with Rule 135(c) under the Securities Act and does not constitute an offer to sell or a solicitation of an offer to buy any securities.

FICO’s forward-looking statements in the press release are based on current expectations and projections about future events. However, they are subject to risks, uncertainties, and changes in circumstances that could cause actual results to differ from those anticipated. Recent performance data from InvestingPro shows strong fundamentals, with revenue growth of 14.7% in the last twelve months. For deeper insights into FICO’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 15 additional ProTips and extensive financial metrics. These risks include, but are not limited to, the market’s reaction to the offering, the implementation of FICO’s strategic initiatives, and general economic conditions. The company cautions that these statements are not guarantees of future performance and advises readers to consult additional SEC filings for further information on potential risks.

This news 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, exceeding earnings expectations with a non-GAAP EPS of $7.81, surpassing the forecast of $7.40. However, the company’s revenue slightly missed expectations, totaling $498.7 million compared to the anticipated $499.58 million. Despite the earnings beat, the company maintained its fiscal year 2025 guidance, projecting moderate expense increases later in the year. Additionally, FICO announced its plan to offer $1.5 billion in senior unsecured notes due in 2033 to repay existing debts and fund general corporate purposes. The notes will be offered to qualified institutional buyers and non-U.S. persons outside the United States. Meanwhile, the company continues to focus on innovation and expanding partnerships, which have strengthened its competitive position. In the analyst arena, no recent upgrades or downgrades were reported, but the company remains committed to consistent share repurchases. These developments reflect FICO’s ongoing strategic efforts to maintain financial stability and growth.

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