|IHS MARKIT LTD. filed this Form 10-Q on 03/26/2019|
Liquidity and Capital Resources
As of February 28, 2019, we had cash and cash equivalents of $133 million. Our principal sources of liquidity include cash generated by operating activities, cash and cash equivalents on the balance sheet, and amounts available under a revolving credit facility. We had approximately $5.60 billion of debt as of February 28, 2019, consisting primarily of $1.303 billion of revolving facility debt, $1.03 billion of term loan debt, and $3.31 billion of senior notes. As of February 28, 2019, we had approximately $695 million available under our revolving credit facility.
In January 2019, we repaid the 364-Day Credit Agreement using cash on hand and borrowings under the revolving credit facility.
Our interest expense for the three months ended February 28, 2019, compared to the three months ended February 28, 2018, increased primarily because of a higher average debt balance due to the Ipreo acquisition, as well as a higher effective interest rate due to an increased amount of fixed-rate debt.
Our Board of Directors has authorized a share repurchase program of up to $3.25 billion of IHS Markit common shares through November 30, 2019, to be funded using our existing cash, cash equivalents, marketable securities and future cash flows, or through the incurrence of short- or long-term indebtedness, at management’s discretion. This repurchase program does not obligate us to repurchase any set dollar amount or number of shares and may be modified, suspended, or terminated at any time without prior notice. Under this program, we are authorized to repurchase our common shares on the open market from time to time, in privately negotiated transactions, or through accelerated share repurchase agreements, subject to availability of common shares, price, market conditions, alternative uses of capital, and applicable regulatory requirements, at management’s discretion. As of February 28, 2019, we had repurchased approximately $2.24 billion under this authorization.
Our Board of Directors has separately authorized, subject to applicable regulatory requirements, the repurchase of our common shares surrendered by employees in an amount equal to the exercise price, if applicable, and statutory tax liability associated with the vesting of their equity awards, for which we pay the statutory tax on behalf of the employee and forgo receipt of the exercise price of the award from the employee, if applicable. Such repurchases have been authorized in addition to the share repurchase program described above.
Based on our cash, debt, and cash flow positions, we believe that we will have sufficient liquidity to meet our ongoing working capital and capital expenditure needs. Our future capital requirements will depend on many factors, including the number and magnitude of future acquisitions, amount of share repurchases, the need for additional facilities or facility improvements, the timing and extent of spending to support product development efforts, information technology infrastructure investments, investments in our internal business applications, and the continued market acceptance of our offerings. We could be required, or could elect, to seek additional funding through public or private equity or debt financings; however, additional funds may not be available on terms acceptable to us.
The decrease in net cash provided by operating activities was primarily due to higher bonus payments and higher interest payments in the first quarter of 2019.
The increase in net cash used in investing activities was principally due to the increase in capital expenditures compared to the prior year.
The decrease in net cash used in financing activities is primarily due to reducing debt balances in the first quarter of 2019, compared to the first quarter of 2018, when we used cash to fund share repurchases.