Summary
Moody's Corporation (MCO) announced the closing of a public offering of $500 million in aggregate principal amount of 4.50% Senior Notes due 2022 on August 20, 2012. The offering was conducted under an underwriting agreement with Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as representatives for the underwriters, and the notes were registered under a previously filed Form S-3. The net proceeds from this debt issuance are earmarked for general corporate purposes. This includes the potential redemption of existing short-term or long-term borrowings, such as up to $127.5 million under its senior unsecured term loan facility, as well as working capital, capital expenditures, strategic acquisitions or investments, and share repurchases under its authorized program. The company entered into a second supplemental indenture with Wells Fargo Bank, National Association, as trustee, to formalize the issuance of these notes.
Key Highlights
- 1Moody's Corporation successfully closed a $500 million public offering of 4.50% Senior Notes due 2022.
- 2The debt issuance occurred on August 20, 2012, with the underwriting agreement dated August 15, 2012.
- 3Proceeds are designated for general corporate purposes, including debt repayment, working capital, capital expenditures, and share repurchases.
- 4A portion of the proceeds may be used to repay up to $127.5 million of borrowings under the company's existing five-year senior unsecured term loan facility.
- 5The notes mature on September 1, 2022, with semi-annual interest payments on March 1 and September 1.
- 6The indenture includes covenants that restrict Moody's and its subsidiaries from incurring certain liens or entering into sale and leaseback transactions.
- 7The notes may be redeemed by the company or repurchased by the company at the holder's option upon a 'Change of Control Triggering Event'.