Debt

6 Months Ended

Feb. 29, 2020

DEBT

FactSet’s debt obligations consisted of the following:


(in thousands)	February 29, 2020		August 31, 2019
2019 Revolving Credit Facility (maturity date of March 29, 2024)	$	575,000	$	575,000

On March 29, 2019, the Company entered into the 2019 Credit Agreement between FactSet, as the borrower, and PNC Bank, National Association ("PNC"), as the administrative agent and lender (the "2019 Credit Agreement"). The 2019 Credit Agreement provides for a $750.0 million revolving credit facility (the "2019 Revolving Credit Facility"). FactSet may request borrowings under the 2019 Revolving Credit Facility until its maturity date of March 29, 2024. The 2019 Credit Agreement also allows FactSet, subject to certain requirements, to arrange for additional borrowings with PNC for an aggregate amount up to $500.0 million, provided that any such request for additional borrowings must be in a minimum amount of $25.0 million.

As of February 29, 2020, FactSet has borrowed $575.0 million of the available $750.0 million provided by the 2019 Revolving Credit Facility, resulting in $175.0 million available to be withdrawn. FactSet is required to pay a commitment fee using a pricing grid currently at 0.10% based on the daily amount by which the available balance in the 2019 Revolving Credit Facility exceeds the borrowed amount. All outstanding loan amounts are reported as Long-term debt within the Consolidated Balance Sheets at February 29, 2020 and August 31, 2019. The principal balance is payable in full on the maturity date.

The fair value of the Company's long-term debt was $575.0 million as of February 29, 2020, which the Company believes approximates the carrying amount as the terms and interest rate approximate market rates given its floating interest rate basis. Borrowings under the loan bear interest on the outstanding principal amount at a rate equal to the daily LIBOR rate plus a spread using a debt leverage pricing grid, currently at 0.875%. For the three months ended February 29, 2020 and February 28, 2019 the Company recorded interest expense of $3.8 million and $5.1 million, respectively, on its outstanding debt amounts. For the six months ended February 29, 2020 and February 28, 2019 the Company recorded interest expense of $8.0 million and $9.9 million, respectively, on its outstanding debt amounts. The weighted average interest rate on amounts outstanding under the Company's credit facilities was 2.76% and 3.35% for the year to date ended February 29, 2020 and August 31, 2019, respectively. Interest on the loan outstanding is payable quarterly, in arrears, and on the maturity date.

During fiscal 2019, FactSet incurred approximately $0.9 million in debt issuance costs related to the 2019 Credit Agreement. These costs were capitalized as loan origination fees and are amortized into interest expense ratably over the term of the 2019 Credit Agreement.

The 2019 Credit Agreement contains covenants and requirements restricting certain FactSet activities, which are usual and customary for this type of loan. In addition, the 2019 Credit Agreement requires that FactSet maintains a consolidated net leverage ratio, as measured by total net funded debt/EBITDA (as defined in the 2019 Credit Agreement) below a specified level as of the end of each fiscal quarter. The Company was in compliance with all the covenants and requirements within the 2019 Credit Agreement as of February 29, 2020.