18.

DEBT

FactSet’s debt obligations consisted of the following:

	At August 31,
(in thousands)	2018		2017
2017 Revolving Credit Facility (maturity date of March 17, 2020)	$	575,000	$	575,000

March 17, 2017,

the Company entered into a Credit Agreement (the

“2017

Credit Agreement”) between FactSet, as the borrower, and PNC Bank, National Association (“PNC”), as the administrative agent and lender. The

2017

Credit Agreement provides for a

$575.0

million revolving credit facility (the

“2017

Revolving Credit Facility”). FactSet

may

request borrowings under the

2017

Revolving Credit Facility until its maturity date of

March 17, 2020.

The

2017

Credit Agreement also allows FactSet, subject to certain requirements, to arrange for additional borrowings with PNC for an aggregate amount of up to

$225.0

million, provided that any such request for additional borrowings must be in a minimum amount of

$25.0

million. Borrowings under the loan bear interest on the outstanding principal amount at a rate equal to the daily LIBOR rate plus

1.00%.

Interest on the loan outstanding is payable quarterly in arrears and on the maturity date. There are

prepayment penalties if the Company elects to prepay the outstanding loan amounts prior to the scheduled maturity date. The principal balance is payable in full on the maturity date.

In conjunction with FactSet’s entrance into the

2017

Credit Agreement, the Company borrowed

$575.0

million in the form of a LIBOR rate loan under the

2017

Revolving Credit Facility and retired the outstanding debt under its previous credit agreement between FactSet, as the borrower, and Bank of America, N.A., as the lender. The total principal amount of the debt outstanding at the time of retirement was

$365.0

million and there were

prepayment penalties. Proceeds from the

2017

Revolving Credit Facility were also used to fund FactSet’s acquisition of BISAM.

All outstanding loan amounts are reported as Long-term debt within the Consolidated Balance Sheet at

August 31, 2018.

During fiscal years

2018,

2017

and

2016,

FactSet recorded interest expense of

$15.9

million,

$8.4

million and

$3.0

million, respectively, on its outstanding debt amounts. The principal balance is payable in full on the maturity date.

As of

August 31, 2018,

commitment fee was owed by FactSet since it borrowed the full amount under the

2017

Credit Agreement. In fiscal

2017,

FactSet incurred approximately

$0.4

million in legal costs to draft and review the

2017

Credit Agreement. These costs were capitalized as loan origination fees and are amortized into interest expense over the term of the loan using the effective interest method.

The

2017

Credit Agreement contained covenants restricting certain FactSet activities, which are usual and customary for this type of loan.

In addition, the

2017

Credit Agreement required that FactSet maintain a consolidated leverage ratio, as measured by total funded debt/EBITDA below a specified level as of the end of each fiscal quarter. The Company was in compliance with all the covenants of the

2017

Credit Agreement as of

August 31, 2018.