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MarketScreener Homepage  >  Equities  >  Nasdaq  >  Morningstar, Inc.    MORN

MORNINGSTAR, INC.

(MORN)
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MORNINGSTAR, INC. : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (form 8-K)

10/26/2020 | 04:24pm EST

Item 1.01. Entry into a Material Definitive Agreement.

On October 26, 2020, Morningstar, Inc. ("Morningstar" or the "Company") completed the issuance and sale of $350.0 million aggregate principal amount of 2.32% senior notes due October 26, 2030 (the "Notes"), in an offering exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to a Note Purchase Agreement entered into on the same date ("Note Purchase Agreement"). Interest on the Notes will be paid semi-annually on each October 30 and April 30 during the term of the Notes and at maturity, with the first interest payment date occurring on April 30, 2021.

The Company expects to use the net proceeds from the offering to reduce outstanding indebtedness under the Company's credit agreement and for general corporate purposes.

The Notes were offered and sold to institutional accredited investors in a private placement. The Company does not intend to register the Notes for resale under the Securities Act and the Notes may not be offered or sold absent such registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

The Note Purchase Agreement provides that the Company shall have a Consolidated Leverage Ratio as of the end of any fiscal quarter of not greater than 3.50 to 1.00; provided that, solely with respect to the four fiscal quarters following any Qualified Acquisition (as defined in the Note Purchase Agreement), the Consolidated Leverage Ratio determined as of the end of such four fiscal quarters shall not be greater than 4.00 to 1.00. If following a Qualified Acquisition the Consolidated Leverage Ratio exceeds 3.50 to 1.00, an incremental leverage fee of 0.75% of the aggregate outstanding principal amount of the Notes will be due with respect to each fiscal quarter beginning thereafter during which the Consolidated Leverage Ratio exceeds 3.50 to 1.00 The Note Purchase Agreement provides that the Company shall have a Consolidated Interest Coverage Ratio as of the end of any fiscal quarter of not less than 2.50 to 1.00. The Company will not at any time permit Priority Debt to exceed 15% of Consolidated Total Assets (determined as of the last day of the most recently ended fiscal quarter of the Company).

The Company may, at its option, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than 5% of the aggregate principal amount of the Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and a make-whole amount determined as provided in the Note Purchase Agreement for the prepayment date with respect to such principal amount.

The Note Purchase Agreement contains restrictive covenants customary for such financings, including, among other things, covenants that place limits on the Company's ability to incur liens on assets, transfer or sell the Company's assets, merge or consolidate with other persons, or enter into material transactions with affiliates. The Note Purchase Agreement also contains events of default customary for such financings, the occurrence of which will permit the purchasers of the Notes to accelerate the amounts due thereunder. The Notes rank pari passu in right of repayment with the Company's other senior unsecured indebtedness.

Morningstar's obligations under the Note Purchase Agreement are unconditionally guaranteed by Morningstar's subsidiaries, Morningstar Investment Management LLC, Morningstar Research Services LLC and Morningstar Ratings Holding Corp., and will in the future be guaranteed by any other domestic subsidiary of Morningstar (with certain exceptions) that contributes 10% or more of the consolidated revenue of Morningstar in any fiscal year.

This summary of the Note Purchase Agreement does not purport to be complete and is subject to, and qualified in its entirety by, reference to the Note Purchase Agreement that is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an

          Off-Balance Sheet Arrangement.



The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

Include the following information:



(d) Exhibits.



   Exhibit No.   Description
     10.1          Note Purchase Agreement dated of as October 26, 2020 by and among
                 Morningstar, Inc. and each of the Purchasers signatory thereto.
   104           The Cover page from this Current Report on Form 8-K formatted in
                 Inline XBRL (included as Exhibit 101).

© Edgar Online, source Glimpses

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Financials (USD)
Sales 2019 1 179 M - -
Net income 2019 152 M - -
Net Debt 2019 320 M - -
P/E ratio 2019 43,0x
Yield 2019 0,75%
Capitalization 8 472 M 8 472 M -
EV / Sales 2018 4,27x
EV / Sales 2019 5,77x
Nbr of Employees 7 692
Free-Float 41,9%
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Managers
NameTitle
Kunal Kapoor Chief Executive Officer & Director
Daniel Edward Needham President & Chief Investment Officer
Joseph D. Mansueto Executive Chairman
Christopher P. Boruff Operations Director
Jason M. Dubinsky Chief Financial Officer
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