Item 1.01 Entry into a Material Definitive Agreement
On August 7, 2020, Black Knight InfoServ, LLC ("BKIS"), an indirect,
wholly-owned subsidiary of Black Knight, Inc. (the "Company"), entered into that
certain First Amendment to Amended and Restated Credit and Guaranty Agreement
(the "Amendment") by and among BKIS, Black Knight Financial Services, LLC, a
Delaware limited liability company, the Lenders party thereto and JPMorgan Chase
Bank, N.A., as administrative agent. The Amendment implemented, among other
things, certain technical changes to permit the proposed senior unsecured notes
offering described in Item 8.01 below, including with the related escrow
arrangements and the special mandatory redemption feature thereof.
The foregoing description of the Amendment is not complete and is subject to,
and qualified in its entirety by, reference to the full text of the Amendment,
which is filed as Exhibit 10.1 and incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
The Company expects to disclose certain supplemental information concerning the
Company in a preliminary offering memorandum and marketing materials that is
being disseminated in connection with the proposed senior unsecured notes
offering described in Item 8.01 below. The supplemental information included in
the preliminary offering memorandum and marketing materials, certain of which
has been previously reported, is set forth in Exhibit 99.1 and incorporated by
reference herein, including, but not limited to, with respect to the following:
· certain financial information of the business of Optimal Blue Holdings, LLC
("Optimal Blue"), the target of the Optimal Blue Acquisition (as defined
below);
· certain descriptions on the Company's strengths and strategies of the business;
· certain descriptions of the transactions in connection with the Optimal Blue
Acquisition, including, but not limited to, the acquisition of Optimal Blue by
way of a joint venture;
· certain risk factors;
· certain of the Company's current and anticipated (in connection with the
Optimal Blue Acquisition) debt facilities and indebtedness; and
· certain of the Company's current and anticipated sources and uses of funds for
the Optimal Blue Acquisition.
The information set forth in and incorporated into this Item 7.01 of this
Current Report on Form 8-K is being furnished pursuant to Item 7.01 of Form 8-K
and shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to
the liabilities of that section, nor shall it be deemed incorporated by
reference into any of the Company's filings under the Securities Act of 1933, as
amended (the "Securities Act"), or the Exchange Act, whether made before or
after the date hereof and regardless of any general incorporation language in
such filings, except to the extent expressly set forth by specific reference in
such a filing. The furnishing of this Item 7.01 of this Current Report on Form
8-K shall not be deemed an admission as to the materiality of any information in
or incorporated by reference herein that is required to be disclosed solely by
reason of Regulation FD.
Item 8.01 Other Events
On August 11, 2020, the Company issued a press release announcing that, subject
to market conditions, its indirect, wholly-owned subsidiary, BKIS, as issuer,
intends to offer and sell $750 million aggregate principal amount of Senior
Notes due 2028 (the "Senior Notes") in an offering that is exempt from the
registration requirements of the Securities Act (the "Notes Offering"). The net
proceeds of the proposed offering will be deposited into an escrow account upon
the closing of the Notes Offering. Upon release from escrow, the Company intends
to use the net proceeds of the issuance of the Senior Notes, together with cash
on hand and borrowings under its revolving credit facility, to finance a portion
of the cash consideration for its previously announced pending acquisition of
Optimal Blue, including repayment of any remaining amounts outstanding under the
Optimal Blue debt facilities, and to pay related fees and expenses (the "Optimal
Blue Acquisition"). The Senior Notes are expected to be guaranteed on a senior
unsecured basis by the Company and by BKIS's direct parent entity and
substantially all of BKIS's wholly-owned restricted subsidiaries that guarantee
its credit facility. The offering is not contingent upon the consummation of the
Optimal Blue Acquisition, although the Senior Notes are subject to a special
mandatory redemption if the Optimal Blue Acquisition is not consummated.
In order to cause Regions Bank (the "Escrow Agent") to release the escrow funds
to BKIS for purposes of funding the Optimal Blue Acquisition on, or prior to
nine months from the date of issuance (the "Outside Date"), BKIS must deliver an
officer's certificate to the Escrow Agent certifying that the Optimal Blue
Acquisition will be consummated simultaneously or substantially concurrent with
the release of funds from the escrow account (the "Purchase Funding Condition").
If (i) the Purchase Funding Condition has not been satisfied prior to 11:59 p.m.
(New York City time) on the Outside Date or (ii) the Issuer delivers a
termination notice to the Escrow Agent prior to 11:59 p.m. (New York City time)
on the Outside Date indicating that (a) we will not pursue the consummation of
the Optimal Blue Acquisition or (b) we have determined in our sole discretion
that the Purchase Funding Condition cannot or is not reasonably likely to be
satisfied by 11:59 p.m. (New York City time) on the Outside Date (any event
described in clauses (i) or (ii) of this sentence, a "Special Mandatory
Redemption Event"), the Senior Notes will be subject to a mandatory redemption,
at a price equal to 100% of the initial issue price of the Senior Notes, plus
accrued and unpaid interest from the date of the initial issuance of the Senior
Notes to, but not including, the redemption date.
A copy of the press release, which was issued in connection with the offering
and pursuant to and in accordance with Rule 135c under the Securities Act, is
attached hereto as Exhibit 99.2 and incorporated by reference herein.
Neither the press release nor this Current Report on Form 8-K constitutes an
offer to sell or the solicitation of an offer to buy the Senior Notes. The
Senior Notes and related guarantees are being offered only to qualified
institutional buyers in reliance on the exemption from registration set forth in
Rule 144A under the Securities Act, and outside the United States to non-U.S.
persons in reliance on the exemption from registration set forth in Regulation S
under the Securities Act. The Senior Notes and the related guarantees have not
been and will not be registered under the Securities Act, or the securities laws
of any state or other jurisdiction, and may not be offered or sold in the United
States without registration or an applicable exemption from the Securities Act
and applicable state securities or blue sky laws and foreign securities laws.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Description
10.1 First Amendment to the Amended and Restated Credit and Guaranty
Agreement, dated as of August 7, 2020, by and among Black Knight
InfoServ, LLC, as Borrower, Black Knight Financial Services, LLC, as
Holdings, the Lenders party thereto and JPMorgan Chase Bank, N.A.,
as Administrative Agent.
99.1 Excerpts from Preliminary Offering Memorandum
99.2 Press release issued by Black Knight, Inc., on August 11, 2020
104 Cover Page Interactive Data File - the cover page XBRL tags are
embedded within the Inline XBRL document.
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