Debt

3 Months Ended

May 06, 2025

Long-term debt consisted of the following as of the dates presented:


	May 6, 2025		February 4, 2025
Credit facility—revolver	$	225.0	$	135.0
Credit facility—term loans	1,387.5		1,389.3

Total debt outstanding	1,612.5		1,524.3
Less current installments of long-term debt	(7.0)		(7.0)
Less debt issue discounts and debt issuance costs	(36.0)		(38.2)
Long-term debt, net	$	1,569.5	$	1,479.1

Credit Facility

In fiscal 2022, the Company entered into a senior secured credit agreement which included a revolving credit facility (the “Revolving Credit Facility”) and a term loan facility (together with the Revolving Credit Facility, the “Credit Facility”). On November 1, 2024, D&B Inc. entered into an amendment with its banking syndicate, which amended the Credit Facility (the “Fourth Amendment”). The Credit Facility is unconditionally guaranteed by D&B Holdings and certain of D&B Inc.’s existing and future wholly owned material domestic subsidiaries.

The Fourth Amendment, among other things:

•provided for a new tranche of term loans in an aggregate principal amount of $700.0 (the “Incremental Term B Loans”) with a maturity date of November 1, 2031, and

•increased the Revolving Credit Facility by $150.0 to a total $650.0 and extended the maturity to November 1, 2029.

The proceeds from the Incremental Term B Loans were primarily used to:

•redeem the $440.0 of then outstanding senior secured notes, and

•pay down $200.0 of the term loans outstanding under the Credit Facility immediately prior to the Fourth Amendment (the “Existing Term B Loans”).

Both the Existing Term B Loans and the Incremental Term B Loans bear interest at Term SOFR or ABR (each, as defined in the amended Credit Facility) plus (i) in the case of Term SOFR loans, 3.25% per annum and (ii) in the case of ABR loans, 2.25% per annum. Loans under the Revolving Credit Facility bear interest subject to a pricing grid based on net total leverage, at Term SOFR plus a spread ranging from 2.50% to 3.00% per annum or ABR plus a spread ranging from 1.50% to 2.00% per annum. Unused commitments under the Revolving Credit Facility incur initial commitment fees of 0.30% to 0.50%. Additionally, the interest rate margin applicable to the Existing Term B Loans and loans outstanding under the Revolving Credit Facility would be subject to an additional 0.25% step-down if a rating of B1/B+ or higher from Moody’s and S&P is achieved (which will step back up if such rating is subsequently not maintained).

A portion of the Revolving Credit Facility not to exceed $35.0 is available for the issuance of letters of credit. As of May 6, 2025, we had letters of credit outstanding of $13.7 and an unused commitment balance of $411.3 under the Revolving Credit Facility. The Credit Facility may be increased through incremental facilities, by an amount equal to the greater of (i) $650.0 and (ii) 0.75 times trailing twelve-month Adjusted EBITDA, as defined in the Credit Facility, plus additional amounts subject to compliance with applicable leverage ratio and/or interest coverage ratio requirements.

Restrictive covenants and debt compliance

Our debt agreements contain restrictive covenants that, among other things, place certain limitations on our ability to incur additional indebtedness, make loans or advances to subsidiaries and other entities, pay dividends, acquire other businesses or sell assets. The Credit Facility also requires the Company to maintain a maximum net total leverage ratio, as defined, as of the end of each fiscal quarter. As of May 6, 2025, we believe we were in compliance with our debt covenants and the terms of our debt agreements.

Interest expense

The Company’s weighted average effective interest rate on our total debt facilities was 8.6% and 9.7% for the three months ended May 6, 2025 and May 5, 2024, respectively.

The following table sets forth our recorded interest expense, net for the periods presented:


	Three Months Ended
	May 6, 2025		May 5, 2024
Interest expense on debt	$	31.9	$	29.6

Amortization of debt issue discount and debt issuance cost	2.4		2.8
Interest expense on sale-leaseback transactions (1)	4.6		1.4
Interest income	(0.4)		(0.1)
Capitalized interest	(1.7)		(0.6)
Total interest expense, net	$	36.8	$	33.1

(1) See discussion of sale-leaseback transaction at Note 3 to the unaudited consolidated financial statements.