(RTTNews) - Fair Isaac Corporation (FICO), a provider of analytics software, Monday announced that it has been authorized to repurchase up to $2 billion of its outstanding common stock. This new buyback program replaces the remaining availability under FICO's previous $1.5 billion stock repurchase program.
Further, the analytics software company amended its credit agreement to provide for an incremental term loan to the tune of $1.5 billion, the full amount of which was drawn on June 5.
FICO intends to use the proceeds to fund an accelerated share repurchase or ASR program pursuant to an agreement it has entered into with Wells Fargo Securities, Inc.
As per the terms of the ASR agreement, on June 8, FICO will make an upfront payment of $1.5 billion to Wells Fargo and FICO expects to receive an initial delivery of approximately 1,055,100 shares of common stock, providing the company with prompt share count reduction.
At final settlement, the company may receive additional shares or, under certain circumstances, may be required to deliver shares or make a cash payment pursuant to the terms of the ASR agreement.
The transactions under the ASR agreement are surmised to be completed by the end of the company's fiscal year i.e. September 30.
Currently, FICO shares were trading at $1131.98, down 0.43% on the New York Stock Exchange.
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