16.

DEBT

FactSet’s debt obligations consisted of the following:

(in thousands)	May 31, 2019		August 31, 2018
2017 Revolving Credit Facility	$	—	$	575,000
2019 Revolving Credit Facility (maturity date of March 29, 2024)	$	575,000	$	—

March 29, 2019,

the Company entered into the

2019

Credit Agreement (the

"2019

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

2019

Credit Agreement provides for a

$750.0

million revolving credit facility (the

"2019

Revolving Credit Facility"). FactSet

may

request borrowings under the

2019

Revolving Credit Facility until its maturity date of

March 29, 2024.

The

2019

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

$500.0

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 a spread using a debt leverage pricing grid, currently at

0.875%.

FactSet borrowed

$575.0

million of the available

$750.0

million provided by the

2019

Revolving Credit Facility. Interest on the loan outstanding is payable quarterly, in arrears, and on the maturity date. The principal balance is payable in full on the maturity date. FactSet is required to pay a commitment fee using a pricing grid currently at

0.10%

based on the daily amount by which the available balance in the

2019

Revolving Credit Facility exceeds the borrowed amount.

March 29, 2019

the borrowings from the

2019

Credit Agreement were used to retire all outstanding debt under the previous

2017

Credit Agreement between FactSet, as the borrower, and PNC as the lender. The total principal amount of the debt outstanding at the time of retirement was

$575.0

million and there were

prepayment penalties.

All outstanding loan amounts are reported as Long-term debt within the consolidated balance sheet at

May

31,

2019.

For the

three

months ended

May

31,

2019

and

2018,

the Company recorded interest expense of

$5.2

million and

$4.3

million on its outstanding debt amounts, respectively. For the

nine

months ended

May

31,

2019

and

2018,

the Company recorded interest expense of

$15.1

million and

$11.3

million on its outstanding debt amounts, respectively. During the

three

months ended

May 31, 2019,

FactSet incurred approximately

$0.9

million in debt issuance costs related to the

2019

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

2019

Credit Agreement.

The

2019

Credit Agreement contains covenants and requirements restricting certain FactSet activities, which are usual and customary for this type of loan. In addition, the

2019

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

2019

Credit Agreement as of

May

31,

2019.