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Morningstar, Inc. (NASDAQ:MORN) announced Friday that it has entered into a new $1.5 billion multi-currency credit agreement, replacing its previous credit facility. According to a statement based on the company’s SEC filing, the agreement was signed with Bank of America, N.A. as the administrative agent, along with other lenders.
The new credit facility includes a five-year $750 million revolving credit facility, a five-year delayed draw term facility of up to $375 million, and a three-year $375 million term facility. The agreement also provides for up to $50 million in letters of credit and a $100 million swingline facility under the revolving credit portion. As of Friday, the principal balance outstanding under the new revolving credit facility was $170 million, which represents a rollover of amounts previously outstanding. This debt restructuring comes as Morningstar’s total debt stood at $1.03 billion in its most recent quarter, with a healthy debt-to-equity ratio of 0.64.
The proceeds from the facility may be used to refinance existing debt, pay related fees and expenses, and for other lawful corporate purposes.
Interest rates on loans under the new credit agreement will be determined by the applicable benchmark rate for the currency borrowed, such as SOFR, SONIA, EURIBOR, Term CORRA, or BBSY. Margins will range from 1.05% to 1.425%, depending on Morningstar’s consolidated net leverage ratio.
The agreement contains various covenants. Morningstar is required to maintain a consolidated net leverage ratio not greater than 3.50 to 1.00 at the end of any fiscal quarter, with a temporary increase to 4.00 to 1.00 allowed for the four quarters following a material acquisition. The company must also maintain a consolidated interest coverage ratio of at least 3.00 to 1.00.
Obligations under the agreement are unconditionally guaranteed by several Morningstar subsidiaries, including Morningstar Investment Management LLC, Morningstar Research Services LLC, Morningstar Ratings Holding Corp., and PitchBook Data, Inc. Additional domestic subsidiaries may be required to provide guarantees if they contribute 10% or more of consolidated revenue in any fiscal year. Certain foreign subsidiaries are designated as borrowers, and more may be added.
The agreement places restrictions on Morningstar and its subsidiaries regarding the payment of dividends and other activities.
This article is based on a press release statement included in Morningstar’s SEC filing.
In other recent news, Morningstar reported third-quarter 2025 results that surpassed consensus expectations, driven by strong performance in the Morningstar Credit segment. The company’s success in US Structured products contributed significantly to these results. In light of these mixed outcomes, BMO Capital adjusted its price target for Morningstar to $250 from $274, while maintaining an Outperform rating. Additionally, Morningstar announced a strategic partnership with NPPG Plan Professionals to enhance its retirement offerings, making personalized retirement plans more accessible to small and mid-sized businesses through Pooled Employer Plans.
In another development, Morningstar is set to acquire the Center for Research in Security Prices (CRSP) from the University of Chicago for $375 million. This acquisition will expand Morningstar’s index business, as CRSP Market Indexes are benchmarks for over $3 trillion in US equities. Morningstar also announced a leadership change with Daniel Dunn, the chief revenue officer, stepping down to pursue another opportunity. Julie Willoughby, with over 25 years at the company, will succeed Dunn as chief revenue officer effective November 21, 2025.
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