e424b3
 

     
Prospectus Supplement No. 2
  Filed pursuant to Rule 424(b)(3)
 
    
(To Prospectus dated January 8, 2004)
  Registration No. 333-111460

$400,000,000

FAIR ISAAC CORPORATION

1.5% Senior Convertible Notes Due August 15, 2023

     This prospectus supplement relates to the resale by the holders of the notes and the shares of our common stock issuable upon conversion of the notes. We will not receive any of the proceeds from the sale of the notes or the underlying shares of common stock by any of the selling securityholders.

     You should read this prospectus supplement together with the accompanying prospectus dated January 8, 2004. The terms of the notes are set forth in the accompanying prospectus.

     The table below sets forth additional information concerning beneficial ownership of the notes and supplements and amends the table appearing under “Selling Securityholders” beginning on page 48 of the accompanying prospectus. To the extent that a selling securityholder is listed in both the table below and in the table appearing in the accompanying prospectus, the information set forth below regarding such selling securityholder supersedes the information in the accompanying prospectus.

                                         
            Shares of           Principal    
            Common   Common   Amount of   Common
    Principal   Stock Owned   Stock Offered   Notes Owned   Stock Owned
    Amount of   Upon   Upon   After   After
    Notes Owned   Conversion of   Conversion of   Completion of   Completion of
Name
   and Offered
   Notes(1)
   Notes(1)
   Offering(2)
   Offering(2)
AIG DKR SoundShore Holdings Ltd.
   $ 1,312,000       19,900       19,900       0       0  
AIG DKR SoundShore Opportunity Holding Fund Ltd.
     923,000       13,999       13,999       0       0  
AIG DKR SoundShore Strategic Holding Fund Ltd.
     565,000       8,569       8,569       0       0  
AM Investment D Fund (QP) LP
     220,000       3,336       3,336       0       0  
AM Investment E Fund Ltd.
     1,260,000       19,111       19,111       0       0  
Alexian Brothers Medical Center
     100,000       1,516       1,516       0       0  
Advent Convertible Master (Cayman) L.P.
     10,640,000       161,386       161,386       0       0  
Advisory Convertible Arbitrage Fund (I) L.P.
     500,000       7,583       7,583       0       0  
Alcon Laboratories
     452,000       6,855       6,855       0       0  
Allentown City Firefighters Pension Plan
     13,000       197       197       0       0  

 

 

                                         
            Shares of           Principal    
            Common   Common   Amount of   Common
    Principal   Stock Owned   Stock Offered   Notes Owned   Stock Owned
    Amount of   Upon   Upon   After   After
    Notes Owned   Conversion of   Conversion of   Completion of   Completion of
Name
   and Offered
   Notes(1)
   Notes(1)
   Offering(2)
   Offering(2)
Allentown City Officers & Employees Pension Fund
   $ 15,000       227       227       0       0  
Allentown City Police Pension Plan
     22,000       333       333       0       0  
Allstate Insurance Company
     1,500,000       22,751       22,751       0       21,033 (3)
Aloha Airlines Non-Pilots Pension Trust
     70,000       1,061       1,061       0       0  
Aloha Pilots Retirement Trust
     36,000       546       546       0       0  
Alpha US Sub Fund 4 LLC
     464,000       7,037       7,037       0       0  
Arapahoe County Colorado
     57,000       864       864       0       0  
Arkansas PERS
     1,500,000       22,751       22,751       0       0  
Arlington County Employees Retirement System
     781,000       11,846       11,846       0       0  
Asante Health Systems
     116,000       1,759       1,759       0       0  
Bank Austria Cayman Islands, Ltd.
     2,500,000       37,919       37,919       0       0  
Bear, Stearns & Co. Inc.
     1,000,000       15,167       15,167       0       0  
Black Diamond Convertible Offshore LDC
     1,306,000       19,809       19,809       0       0  
Black Diamond Offshore Ltd.
     729,000       11,057       11,057       0       0  
Boilermakers Blacksmith Pension Trust
     1,200,000       18,201       18,201       0       0  
British Virgin Islands Social Security Board
     103,000       1,562       1,562       0       0  
C & H Sugar Company Inc.
     90,000       1,365       1,365       0       0  
CNH CA Master Account, L.P.
     1,500,000       22,751       22,751       0       0  
CALAMOS® Convertible Fund — CALAMOS® Investment Trust
     7,400,000       112,242       112,242       0       0  
Chrysler Corporation Master Retirement Trust
     4,530,000       68,710       68,710       0       0  
Citadel Credit Trading Ltd.
     55,000       834       834       0       0  
Citadel Equity Fund Ltd.
     3,445,000       52,253       52,253       0       0  
City and County of San Francisco Retirement System
     1,728,000       26,210       26,210       0       0  
City of New Orleans
     238,000       3,609       3,609       0       0  
City University of New York
     175,000       2,654       2,654       0       0  
Convertible Securities Fund
     90,000       1,365       1,365       0       0  

S-2

 

                                         
            Shares of           Principal    
            Common   Common   Amount of   Common
    Principal   Stock Owned   Stock Offered   Notes Owned   Stock Owned
    Amount of   Upon   Upon   After   After
    Notes Owned   Conversion of   Conversion of   Completion of   Completion of
Name
   and Offered
   Notes(1)
   Notes(1)
   Offering(2)
   Offering(2)
Credit Lyonnais Securities (USA) Inc.
   $ 4,000,000       60,671       60,671       0       0  
Credit Suisse First Boston LLC
     1,830,000       27,757       27,757       0       0  
DaimlerChrysler Corp Emp. # 1 Pension Plan, Dtd 4/1/89
     3,470,000       52,632       52,632       0       0  
DB Equity Opportunities Master Portfolio Ltd.
     3,000,000       45,503       45,503       0       0  
Deam Convertible Arbitrage
     1,500,000       22,751       22,751       0       0  
Delaware PERS
     2,200,000       33,369       33,369       0       0  
Delaware Public Employees Retirement System
     1,813,000       27,499       27,499       0       0  
Delta Airlines Master Trust
     545,000       8,266       8,266       0       0  
Delta Air Lines Master Trust — CV
     1,870,000       28,363       28,363       0       0  
Delta Pilots Disability & Survivorship Trust — CV
     905,000       13,726       13,726       0       0  
Double Black Diamond Offshore LDC
     3,825,000       58,017       58,017       0       0  
Drury University
     15,000       227       227       0       0  
Duke Endowment
     230,000       3,488       3,488       0       0  
Family Service Life Insurance Co.
     200,000       3,033       3,033       0       0  
F. R. Convt. Sec. Fn
     220,000       3,336       3,336       0       0  
Fore Convertible MasterFund Ltd.
     17,000,000       257,854       257,854       0       0  
Franklin and Marshall College
     270,000       4,095       4,095       0       0  
FrontPoint Convertible Arbitrage Fund, L.P.
     2,000,000       30,335       30,335       0       0  
Gaia Offshore Master Fund Ltd.
     3,170,000       48,082       48,082       0       0  
Genesys Regional Medical Center
     160,000       2,426       2,426       0       0  
Global Bermuda Limited Partnership
     3,000,000       45,503       45,503       0       0  
Goldman Sachs & Co.
     5,366,000       81,390       81,390       0       122,016 (4)
Grady Hospital Foundation
     155,000       2,351       2,351       0       0  
Guardian Life Insurance Co.
     7,200,000       109,208       109,208       0       0  
Guggenheim Portfolio Company VIII, LLC
     5,000,000       75,839       75,839       0       0  

S-3

 

                                         
            Shares of           Principal    
            Common   Common   Amount of   Common
    Principal   Stock Owned   Stock Offered   Notes Owned   Stock Owned
    Amount of   Upon   Upon   After   After
    Notes Owned   Conversion of   Conversion of   Completion of   Completion of
Name
   and Offered
   Notes(1)
   Notes(1)
   Offering(2)
   Offering(2)
Guggenheim Portfolio Co. XV, LLC
   $ 550,000       8,342       8,342       0       0  
HBK Master Fund L.P.
     19,500,000       295,774       295,774       0       3,800  
Hfr Arbitrage Fund
     524,000       7,947       7,947       0       0  
Hawaiian Airlines Employees Pension Plan-IAM
     25,000       379       379       0       0  
Hawaiian Airlines Pension Plan for Salaried Employees
     4,000       60       60       0       0  
Hawaiian Airlines Pilots Retirement Plan
     65,000       985       985       0       0  
Highbridge International LLC
     40,000,000       606,716       606,716       0       0  
Hillbloom Foundation
     30,000       455       455       0       0  
ICI American Holdings Trust
     500,000       7,583       7,583       0       0  
Independence Blue Cross
     400,000       6,067       6,067       0       0  
JMG Capital Partners, LP
     16,000,000       242,686       242,686       0       0  
KBC Financial Products USA Inc.
     3,100,000       47,020       47,020       0       0  
Lakeshore International Limited
     12,000,000       182,014       182,014       0       0  
Lyxor
     1,273,000       19,308       19,308       0       0  
Lyxor/AM Investment Fund Ltd.
     340,000       5,157       5,157       0       0  
Lyxor/Gaia II Fund Ltd.
     830,000       12,589       12,589       0       0  
MLQA Convertible Securities Arbitrage
     5,000,000       75,839       75,839       0       0  
MSD TCB, LB
     2,000,000       30,335       30,335       0       0  
Man Mac I Limited
     7,000,000       106,175       106,175       0       0  
Man Convertible Bond Master Fund, Ltd.
     13,600,000       206,283       206,283       0       0  
McMahan Securities Co. L.P.
     17,000       257       257       0       0  
Mellon HBV Master Convertible Arbitrage Fund LP
     1,000,000       15,167       15,167       0       0  
Mellon HBV Master MultiStrategy Fund LP
     250,000       3,791       3,791       0       0  
Merrill Lynch Insurance Group
     321,000       4,868       4,868       0       0  
Microsoft Corporation
     2,130,000       32,307       32,307       0       0  
Mint Master Fund LP
     250,000       3,791       3,791       0       0  
Morgan Stanley Convertible Securities Trust
     1,750,000       26,543       26,543       0       0  

S-4

 

                                         
            Shares of           Principal    
            Common   Common   Amount of   Common
    Principal   Stock Owned   Stock Offered   Notes Owned   Stock Owned
    Amount of   Upon   Upon   After   After
    Notes Owned   Conversion of   Conversion of   Completion of   Completion of
Name
   and Offered
   Notes(1)
   Notes(1)
   Offering(2)
   Offering(2)
Motion Picture Industry Health Plan — Active Member Fund
   $ 470,000       7,128       7,128       0       0  
Motion Picture Industry Health Plan — Retiree Member Fund
     310,000       4,702       4,702       0       0  
Municipal Employees
     280,000       4,247       4,247       0       0  
Munson Medical Center Retirement Plan
     70,000       1,061       1,061       0       0  
Munson2 Healthcare Board Designated Operating Fund
     55,000       834       834       0       0  
Nations Convertible Securities Fund
     11,910,000       180,649       180,649       0       0  
National Bank of Canada c/o Putnam Lovell NBF Securities Inc.
     3,000,000       45,503       45,503       0       0  
New Orleans Firefighters Pension/Relief Fund
     158,000       2,396       2,396       0       0  
Nisswa Master Fund Ltd.
     3,000,000       45,503       45,503       0       0  
OCM Convertible Trust
     3,750,000       56,879       56,879       0       0  
OCM Global Convertible Securities Fund — DC
     230,000       3,488       3,488       0       0  
Oakwood Assurance Company
     50,000       758       758       0       0  
Oakwood Healthcare Inc. Funded Depreciation
     85,000       1,289       1,289       0       0  
Oakwood Healthcare Inc. (Pension)
     160,000       2,426       2,426       0       0  
Oakwood Healthcare Inc. (Endowment)
     7,000       106       106       0       0  
Oakwood Healthcare Inc. — OHP
     13,000       197       197       0       0  
Occidental Petroleum Corporation.
     316,000       4,793       4,793       0       0  
Ohio Bureau of Workers Compensation
     172,000       2,608       2,608       0       0  
Oppenheimer Convertible Securities Fund
     4,500,000       68,255       68,255       0       0  
Pacific Life Insurance Company
     500,000       7,583       7,583       0       0  
Park Avenue Life Insurance Co.
     100,000       1,516       1,516       0       0  
Partner Reinsurance Company Ltd.
     1,585,000       24,041       24,041       0       0  

S-5

 

                                         
            Shares of           Principal    
            Common   Common   Amount of   Common
    Principal   Stock Owned   Stock Offered   Notes Owned   Stock Owned
    Amount of   Upon   Upon   After   After
    Notes Owned   Conversion of   Conversion of   Completion of   Completion of
Name
   and Offered
   Notes(1)
   Notes(1)
   Offering(2)
   Offering(2)
Policeman and Fireman Retirement System of the City of Detroit
   $ 540,000       8,190       8,190       0       0  
Privilege Portfolio SICAV
     5,000,000       75,839       75,839       0       0  
Pro-mutual
     877,000       13,302       13,302       0       0  
Prudential Insurance Co of America
     130,000       1,971       1,971       0       0  
Putnam Convertible Income — Growth Trust
     7,500,000       113,759       113,759       0       0  
Pyramid Equity Strategies Fund
     750,000       11,375       11,375       0       0  
Quattro Fund Ltd.
     6,400,000       97,074       97,074       0       0  
Qwest Occupational Health Trust
     515,000       7,811       7,811       0       0  
RBC Alternative Assets L.P.
     100,000       1,516       1,516       0       252  
RCG Latitude Master Fund, Ltd.
     3,400,000       51,570       51,570       0       0  
RCG Multi Strategy Master Fund, Ltd.
     1,900,000       28,819       28,819       0       0  
Ramius Capital Group
     500,000       7,583       7,583       0       0  
Ramius Master Fund, Ltd.
     2,600,000       39,436       39,436       0       0  
Royal Bank of Canada
     3,000,000       45,503       45,503       0       1,173  
St. Thomas Trading, Ltd.
     26,400,000       400,432       400,432       0       0  
Sage Capital
     2,150,000       32,610       32,610       0       0  
Silverback Master, Ltd.
     3,500,000       53,087       53,087       0       0  
State Employees’ Retirement Fund of the State of Delaware
     2,105,000       31,928       31,928       0       0  
State of Maryland Retirement Agency
     3,747,000       56,834       56,834       0       0  
State of Oregon/Equity
     6,800,000       103,141       103,141       0       0  
State of Oregon/SAIF Corp.
     2,125,000       32,231       32,231       0       0  
State Street Bank Custodian for GE Pension Trust
     2,260,000       34,279       34,279       0       0  
Stonebridge Life Insurance
     1,000,000       15,167       15,167       0       0  
Sunrise Partners Limited Partnership
     12,400,000       188,081       188,081       0       7,241  
Syngenta AG
     375,000       5,687       5,687       0       0  
TD Securities (USA) Inc.
     10,000,000       151,679       151,679       0       0  
Tag Associates
     99,000       1,501       1,501       0       0  

S-6

 

                                         
            Shares of           Principal    
            Common   Common   Amount of   Common
    Principal   Stock Owned   Stock Offered   Notes Owned   Stock Owned
    Amount of   Upon   Upon   After   After
    Notes Owned   Conversion of   Conversion of   Completion of   Completion of
Name
   and Offered
   Notes(1)
   Notes(1)
   Offering(2)
   Offering(2)
Teachers Insurance and Annuity Association of America
   $ 17,500,000       265,438       265,438       0       0  
The Coast Fund, L.P.
     2,000,000       30,335       30,335       0       0  
The Grable Foundation
     88,000       1,334       1,334       0       0  
Thomas Weisel Partners LLC
     1,700,000       25,785       25,785       0       0  
Transamerica Life Insurance & Annuities Co.
     17,910,000       271,657       271,657       0       0  
Travelers Indemnity Company — Commercial Lines
     510,000       7,735       7,735       0       0  
Travelers Indemnity Company — Personal Lines
     340,000       5,157       5,157       0       0  
Tribeca Investments Ltd.
     2,000,000       30,335       30,335       0       0  
Trustmark Insurance
     394,000       5,976       5,976       0       0  
UnumProvident Corporation
     500,000       7,583       7,583       0       0  
US Bank FBO Benedictine Health Systems
     110,000       1,668       1,668       0       0  
Wachovia Bank National Association
     25,000,000       379,197       379,197       0       0  
Waterstone Market Neutral Fund LP
     1,003,000       15,213       15,213       0       0  
Waterstone Market Neutral Offshore Fund Ltd.
     6,997,000       106,129       106,129       0       0  
White River Securities L.L.C
     1,000,000       15,167       15,167       0       0  
Worldwide Transactions Ltd.
     140,000       2,123       2,123       0       0  
Xavex Convertible Arbitrage 5 Fund
     1,050,000       15,926       15,926       0       0  
Zeneca Holdings Trust
     675,000       10,238       10,238       0       0  
Zurich Institutional Benchmark Management c/o Quattro Fund
     1,600,000       24,268       24,268       0       0  
1976 Distribution Trust FBO A.R Lauder/Zinterhofer
     7,000       106       106       0       0  
2000 Revocable Trust FBO A.R Lauder/Zinterhofer
     7,000       106       106       0       0  

(1)   Assumes conversion of all of the selling securityholder’s notes at the initial conversion rate of 15.1679 shares per note. However, the conversion rate is subject to adjustment as described under “Description of the Notes — Conversion of Notes” in the accompanying prospectus. As a result, the amount of common stock issuable upon conversion of the notes may increase or decrease in the future. Assuming a conversion rate of 15.1679 shares per note, no selling securityholder will own more than 1% of our outstanding common stock upon conversion of the debentures.

S-7

 

(2)   Assumes that all of the notes and/or all of the common stock into which the notes are convertible are sold. No selling securityholder will own more than 1% of our outstanding common stock after the offering by such securityholder.

(3)   Includes 13,100 shares held by Allstate Insurance Company, 1,100 shares held by Allstate New Jersey Insurance Company, 1,442 shares held by Agents Pension Plan and 5,391 shares held by Allstate Retirement Plan.

(4)   Includes 17,480 shares of common stock issuable upon conversion of 5.25% Convertible Subordinated Notes due September 1, 2008 assuming a conversion rate of 18.0213 shares per note.

     We prepared this table based on the information supplied to us by the selling securityholders named in the table prior to the date hereof. The selling securityholders listed in the above table may have sold or transferred, in transactions exempt from the registration requirements of the Securities Act, some or all of their notes since the date on which the information is presented in the above table. Information about the selling securityholders may change over time. Any changed information will be set forth in prospectus supplements to the accompanying prospectus.

     Because the selling securityholders may offer all or some of their notes or the underlying common stock from time to time, we cannot estimate the amount of the notes or the underlying common stock that will be held by the selling securityholders upon the termination of any particular offering. See “Plan of Distribution” in the accompanying prospectus.

     None of the named selling securityholders nor any of their affiliates, officers, directors or principal equity holders has held any position or office or has had any material relationship with us within the past three years.

     Investing in the notes involves risks. See “Risk Factors” beginning on page 7 of the accompanying prospectus.

     Neither the Securities and Exchange Commission nor any other federal or state securities commission or regulatory authority has approved or disapproved of these securities or determined if this prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus supplement is February 23, 2004.

S-8