e424b3
 

Prospectus Supplement No. 3   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.

                                         
                            Principal    
    Principal   Shares of   Common Stock   Amount of    
    Amount of   Common Stock Owned   Offered Upon   Notes Owned After   Common Stock Owned
    Notes Owned   Upon Conversion of   Conversion of   Completion of   After Completion of
Name
   and Offered
   Notes(1)(2)
   Notes(1)(2)
   Offering(3)
   Offering(2)(3)
AIG DKR SoundShore Holdings Ltd.
   $ 1,312,000       29,850       29,850       0       0  
AIG DKR SoundShore Opportunity Holding Fund Ltd.
     923,000       20,999       20,999       0       0  
AIG DKR SoundShore Strategic Holding Fund Ltd.
     565,000       12,854       12,854       0       0  
AM Investment D Fund (QP) LP
     220,000       5,005       5,005       0       0  
AM Investment E Fund Ltd.
     1,260,000       28,667       28,667       0       0  
Advent Convertible Master (Cayman) L.P.
     10,640,000       242,079       242,079       0       0  
Advisory Convertible Arbitrage Fund (I) L.P.
     500,000       11,375       11,375       0       0  
Alcon Laboratories
     452,000       10,283       10,283       0       0  
Allentown City Firefighters Pension Plan
     13,000       295       295       0       0  

 

 

                                         
                            Principal    
    Principal   Shares of   Common Stock   Amount of    
    Amount of   Common Stock Owned   Offered Upon   Notes Owned After   Common Stock Owned
    Notes Owned   Upon Conversion of   Conversion of   Completion of   After Completion of
Name
   and Offered
   Notes(1)(2)
   Notes(1)(2)
   Offering(3)
   Offering(2)(3)
Allentown City Officers & Employees Pension Fund
   $ 15,000       341       341       0       0  
Allentown City Police Pension Plan
     22,000       500       500       0       0  
Allstate Insurance Company
     1,500,000       34,127       34,127       0       31,549 (4)
Alpha US Sub Fund 4 LLC
     464,000       10,556       10,556       0       0  
Arapahoe County Colorado
     57,000       1,296       1,296       0       0  
Arkansas PERS
     2,000,000       45,503       45,503       0       0  
Arlington County Employees Retirement System
     781,000       17,769       17,769       0       0  
Asante Health Systems
     116,000       2,639       2,639       0       0  
Bank Austria Cayman Islands, Ltd.
     2,500,000       56,879       56,879       0       0  
Bear, Stearns & Co. Inc.
     1,000,000       22,751       22,751       0       0  
Black Diamond Convertible Offshore LDC
     1,306,000       29,713       29,713       0       0  
Black Diamond Offshore Ltd.
     729,000       16,586       16,586       0       0  
Boilermakers Blacksmith Pension Trust
     1,700,000       38,678       38,678       0       0  
British Virgin Islands Social Security Board
     103,000       2,343       2,343       0       0  
CNH CA Master Account, L.P.
     1,500,000       34,127       34,127       0       0  
CALAMOS® Convertible Fund – CALAMOS® Investment Trust
     7,400,000       168,363       168,363       0       0  
Chrysler Corporation Master Retirement Trust
     4,530,000       103,065       103,065       0       0  
Citadel Credit Trading Ltd.
     55,000       1,251       1,251       0       0  
Citadel Equity Fund Ltd.
     3,445,000       78,379       78,379       0       0  
City and County of San Francisco Retirement System
     1,728,000       39,315       39,315       0       0  
City of New Orleans
     238,000       5,414       5,414       0       0  
City University of New York
     175,000       3,981       3,981       0       0  
Convertible Securities Fund
     90,000       2,047       2,047       0       0  
Credit Lyonnais Securities (USA) Inc.
     4,000,000       91,007       91,007       0       0  
Credit Suisse First Boston LLC
     1,830,000       41,635       41,635       0       0  
DB Equity Opportunities Master Portfolio Ltd.
     3,000,000       68,255       68,255       0       0  

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                            Principal    
    Principal   Shares of   Common Stock   Amount of    
    Amount of   Common Stock Owned   Offered Upon   Notes Owned After   Common Stock Owned
    Notes Owned   Upon Conversion of   Conversion of   Completion of   After Completion of
Name
   and Offered
   Notes(1)(2)
   Notes(1)(2)
   Offering(3)
   Offering(2)(3)
DBAG London
   $ 5,250,000       119,446       119,446       0       0  
DaimlerChrysler Corp Emp. # 1 Pension Plan, Dtd 4/1/89
     3,470,000       78,948       78,948       0       0  
Deam Convertible Arbitrage
     1,500,000       34,127       34,127       0       0  
Delaware PERS
     2,200,000       50,053       50,053       0       0  
Delaware Public Employees Retirement System
     1,813,000       41,249       41,249       0       0  
Delta Airlines Master Trust
     555,000       12,627       12,627       0       0  
Delta Air Lines Master Trust – CV
     1,870,000       42,545       42,545       0       0  
Delta Pilots Disability & Survivorship Trust – CV
     905,000       20,590       20,590       0       0  
Deutsche Bank Securities Inc.
     7,000,000       159,262       159,262       0       0  
Double Black Diamond Offshore LDC
     3,825,000       87,025       87,025       0       0  
Duke Endowment
     330,000       7,508       7,508       0       0  
Exis Differential Holdings Ltd.
     1,000,000       22,751       22,751       0       0  
F. R. Convt. Sec. Fn
     225,000       5,119       5,119       0       0  
Family Service Life Insurance Co.
     200,000       4,550       4,550       0       0  
Fore Convertible MasterFund Ltd.
     17,000,000       386,780       386,780       0       0  
Franklin and Marshall College
     270,000       6,142       6,142       0       0  
FrontPoint Convertible Arbitrage Fund, L.P.
     2,000,000       45,503       45,503       0       0  
Gaia Offshore Master Fund Ltd.
     3,170,000       72,123       72,123       0       0  
Genesys Regional Medical Center.
     160,000       3,640       3,640       0       0  
Global Bermuda Limited Partnership
     3,000,000       68,225       68,225       0       0  
Goldman Sachs & Co.
     5,366,000       122,086       122,086       0       179,523 (5)
Grady Hospital Foundation
     155,000       3,526       3,526       0       0  
Guardian Life Insurance Co.
     7,200,000       163,812       163,812       0       0  
Guggenheim Portfolio Company VIII, LLC
     5,000,000       113,759       113,759       0       0  
Guggenheim Portfolio Co. XV, LLC
     550,000       12,513       12,513       0       0  
HBK Master Fund L.P.
     19,500,000       443,660       443,660       0       5,700  

S-3

 

                                         
                            Principal    
    Principal   Shares of   Common Stock   Amount of    
    Amount of   Common Stock Owned   Offered Upon   Notes Owned After   Common Stock Owned
    Notes Owned   Upon Conversion of   Conversion of   Completion of   After Completion of
Name
   and Offered
   Notes(1)(2)
   Notes(1)(2)
   Offering(3)
   Offering(2)(3)
Hfr Arbitrage Fund
   $ 524,000       11,921       11,921       0       0  
Highbridge International LLC
     40,000,000       910,072       910,072       0       0  
ICI American Holdings Trust
     500,000       11,375       11,375       0       0  
ING Convertible Fund
     2,000,000       45,503       45,503       0       0  
ING VP Convertible Fund
     30,000       682       682       0       0  
Independence Blue Cross
     400,000       9,100       9,100       0       0  
JMG Capital Partners, LP
     16,000,000       364,028       364,028       0       0  
KBC Financial Products USA Inc.
     3,100,000       70,530       70,530       0       0  
Lakeshore International Limited.
     12,000,000       273,021       273,021       0       0  
Lighthouse Multi-Strategy Master Fund LP
     450,000       10,238       10,238       0       0  
Lyxor
     1,273,000       28,963       28,963       0       0  
Lyxor/AM Investment Fund Ltd.
     340,000       7,735       7,735       0       0  
Lyxor/Gaia II Fund Ltd.
     830,000       18,883       18,883       0       0  
Lyxor/Qwest Fund Ltd.
     300,000       6,825       6,825       0       0  
MLQA Convertible Securities Arbitrage
     5,000,000       113,759       113,759       0       0  
MSD TCB, LB
     2,000,000       45,503       45,503       0       0  
Man Mac I Limited
     7,000,000       159,262       159,262       0       0  
Man Convertible Bond Master Fund, Ltd.
     13,600,000       309,424       309,424       0       0  
McMahan Securities Co. L.P.
     17,000       386       386       0       0  
Mellon HBV Master Convertible Arbitrage Fund LP
     1,000,000       22,751       22,751       0       0  
Mellon HBV Master MultiStrategy Fund LP
     250,000       5,687       5,687       0       0  
Merrill Lynch Insurance Group
     321,000       7,303       7,303       0       0  
Microsoft Corporation
     2,130,000       48,461       48,461       0       0  
Mint Master Fund LP
     250,000       5,687       5,687       0       0  
Morgan Stanley Convertible Securities Trust
     1,750,000       39,815       39,815       0       0  
Motion Picture Industry Health Plan – Active Member Fund
     470,000       10,693       10,693       0       0  
Motion Picture Industry Health Plan — Retiree Member Fund
     310,000       7,053       7,053       0       0  
Municipal Employees
     280,000       6,370       6,370       0       0  

S-4

 

                                         
                            Principal    
    Principal   Shares of   Common Stock   Amount of    
    Amount of   Common Stock Owned   Offered Upon   Notes Owned After   Common Stock Owned
    Notes Owned   Upon Conversion of   Conversion of   Completion of   After Completion of
Name
   and Offered
   Notes(1)(2)
   Notes(1)(2)
   Offering(3)
   Offering(2)(3)
Munson Medical Center Retirement Plan
   $ 70,000       1,592       1,592       0       0  
Munson2 Healthcare Board Designated Operating Fund
     55,000       1,251       1,251       0       0  
Nations Convertible Securities Fund
     11,910,000       270,973       270,973       0       0  
National Bank of Canada c/o Putnam Lovell NBF Securities Inc.
     3,000,000       68,255       68,255       0       0  
New Orleans Firefighters Pension/Relief Fund
     158,000       3,594       3,594       0       0  
Nisswa Master Fund Ltd.
     3,000,000       68,255       68,255       0       0  
OCM Convertible Trust
     3,750,000       85,319       85,319       0       0  
OCM Global Convertible Securities Fund – DC
     230,000       5,232       5,232       0       0  
Oakwood Assurance Company
     50,000       1,137       1,137       0       0  
Oakwood Healthcare Inc. Funded Depreciation
     85,000       1,933       1,933       0       0  
Oakwood Healthcare Inc. (Pension)
     160,000       3,640       3,640       0       0  
Oakwood Healthcare Inc. (Endowment)
     7,000       159       159       0       0  
Oakwood Healthcare Inc. – OHP
     13,000       295       295       0       0  
Occidental Petroleum Corporation
     316,000       7,189       7,189       0       0  
Ohio Bureau of Workers Compensation
     172,000       3,913       3,913       0       0  
Oppenheimer Convertible Securities Fund
     4,500,000       102,383       102,383       0       0  
Pacific Life Insurance Company
     500,000       11,375       11,375       0       0  
Park Avenue Life Insurance Co.
     100,000       2,275       2,275       0       0  
Partner Reinsurance Company Ltd.
     1,585,000       36,061       36,061       0       0  
Policeman and Fireman Retirement System of the City of Detroit
     540,000       12,285       12,285       0       0  
Privilege Portfolio SICAV
     5,000,000       113,759       113,759       0       0  
Pro-mutual
     877,000       19,953       19,953       0       0  

S-5

 

                                         
                            Principal    
    Principal   Shares of   Common Stock   Amount of    
    Amount of   Common Stock Owned   Offered Upon   Notes Owned After   Common Stock Owned
    Notes Owned   Upon Conversion of   Conversion of   Completion of   After Completion of
Name
   and Offered
   Notes(1)(2)
   Notes(1)(2)
   Offering(3)
   Offering(2)(3)
Prudential Insurance Co of America
   $ 130,000       2,957       2,957       0       0  
Putnam Convertible Income – Growth Trust
     7,500,000       170,638       170,638       0       0  
Pyramid Equity Strategies Fund
     750,000       17,063       17,063       0       0  
Quattro Fund Ltd.
     6,400,000       145,611       145,611       0       0  
Qwest Global Convertible Fund Ltd.
     2,250,000       51,191       51,191       0       0  
Qwest Occupational Health Trust
     515,000       11,717       11,717       0       0  
RBC Alternative Assets L.P.
     100,000       2,275       2,275       0       378  
RCG Latitude Master Fund, Ltd.
     3,400,000       77,356       77,356       0       0  
RCG Multi Strategy Master Fund, Ltd.
     1,900,000       43,228       43,228       0       0  
Ramius Capital Group
     500,000       11,375       11,375       0       0  
Ramius Master Fund, Ltd.
     2,600,000       59,154       59,154       0       0  
Royal Bank of Canada
     3,000,000       68,255       68,255       0       1,759  
St. Thomas Trading, Ltd.
     26,400,000       600,647       600,647       0       0  
Sage Capital
     3,800,000       48,916       48,916       0       0  
Silverback Master, Ltd.
     3,500,000       79,631       79,631       0       0  
State Employees’ Retirement Fund of the State of Delaware
     2,105,000       47,892       47,892       0       0  
State of Maryland Retirement Agency
     3,747,000       85,250       85,250       0       0  
State of Oregon/Equity
     6,800,000       154,712       154,712       0       0  
State Street Bank Custodian for GE Pension Trust
     2,260,000       51,419       51,419       0       0  
Stonebridge Life Insurance
     1,000,000       22,751       22,751       0       0  
Sunrise Partners Limited Partnership
     12,400,000       282,122       282,122       0       10,861  
Syngenta AG
     375,000       8,531       8,531       0       0  
TD Securities (USA) Inc.
     10,000,000       227,518       227,518       0       0  
Tag Associates
     99,000       2,252       2,252       0       0  
Teachers Insurance and Annuity Association of America
     17,500,000       398,156       398,156       0       0  
The Coast Fund, L.P.
     2,000,000       45,503       45,503       0       0  
The Grable Foundation
     88,000       2,002       2,002       0       0  

S-6

 

                                         
                            Principal    
    Principal   Shares of   Common Stock   Amount of    
    Amount of   Common Stock Owned   Offered Upon   Notes Owned After   Common Stock Owned
    Notes Owned   Upon Conversion of   Conversion of   Completion of   After Completion of
Name
   and Offered
   Notes(1)(2)
   Notes(1)(2)
   Offering(3)
   Offering(2)(3)
Thomas Weisel Partners LLC
   $ 1,700,000       38,678       38,678       0       0  
Transamerica Life Insurance & Annuities Co.
     17,910,000       407,484       407,484       0       0  
Travelers Indemnity Company – Commercial Lines
     510,000       11,603       11,603       0       0  
Travelers Indemnity Company – Personal Lines
     340,000       7,735       7,735       0       0  
Tribeca Investments Ltd.
     2,000,000       45,503       45,503       0       0  
Trustmark Insurance
     394,000       8,964       8,964       0       0  
UnumProvident Corporation
     500,000       11,375       11,375       0       0  
Wachovia Bank National Association
     25,000,000       568,795       568,795       0       0  
Waterstone Market Neutral Fund LP
     1,270,000       28,894       28,894       0       0  
Waterstone Market Neutral Offshore Fund Ltd.
     6,382,000       145,201       145,201       0       0  
White River Securities L.L.C.
     1,000,000       22,751       22,751       0       0  
Worldwide Transactions Ltd.
     140,000       3,185       3,185       0       0  
Xavex Convertible Arbitrage 5 Fund
     1,050,000       23,889       23,889       0       0  
Zeneca Holdings Trust
     675,000       15,357       15,357       0       0  
Zurich Institutional Benchmark Management c/o Quattro Fund
     1,600,000       36,402       36,402       0       0  
1976 Distribution Trust FBO A.R Lauder/Zinterhofer
     7,000       159       159       0       0  
2000 Revocable Trust FBO A.R Lauder/Zinterhofer
     7,000       159       159       0       0  

(1)   Assumes conversion of all of the selling securityholder’s notes at the conversion rate of 22.7518 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 22.7518 shares per note, no selling securityholder will own more than 1% of our outstanding common stock upon conversion of the debentures.
 
(2)   All amounts have been adjusted to reflect a three-for-two stock split that occurred on February 2, 2004.
 
(3)   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.

S-7

 

(4)   Includes 19,650 shares held by Allstate Insurance Company, 1,650 shares held by Allstate New Jersey Insurance Company, 2,163 shares held by Agents Pension Plan and 8,086 shares held by Allstate Retirement Plan.
 
(5)   Includes 26,119 shares of common stock issuable upon conversion of 5.25% Convertible Subordinated Notes due September 1, 2008 assuming a conversion rate of 27.03 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 March 29, 2004.

S-8