Summary
Moody's Corporation (MCO) has established a new $1 billion commercial paper program to fund its general corporate purposes. This program allows the company to issue short-term, unsecured debt notes with maturities of up to 397 days, which will rank equally with its other unsecured and unsubordinated debt. The company plans to use its existing revolving credit facility as a liquidity backstop for borrowings under this program. While no notes are currently outstanding, this initiative provides Moody's with flexible access to short-term funding, which is a common treasury management tool for large corporations. Investors should note that these notes have not been registered under the Securities Act and are being offered under an exemption.
Key Highlights
- 1Moody's Corporation established a new $1,000,000,000 commercial paper program on August 3, 2016.
- 2The program allows for the issuance of short-term, unsecured commercial paper notes.
- 3Notes will have maturities of up to 397 days from the date of issue.
- 4The aggregate principal amount of notes outstanding at any time cannot exceed $1 billion.
- 5Proceeds from the issuance of notes are intended for general corporate purposes.
- 6Moody's plans to utilize its revolving credit facility as a liquidity backstop for the program.
- 7No commercial paper notes are currently outstanding under this new program.
Frequently Asked Questions
The primary purpose of this commercial paper program is to provide Moody's Corporation with a flexible and efficient way to access short-term funding for its general corporate purposes. This includes managing working capital needs, funding operational expenses, and other general corporate activities.
The aggregate face or principal amount of the commercial paper notes outstanding under this program at any given time cannot exceed $1,000,000,000 (one billion dollars).
The commercial paper notes issued under this program will have maturities of up to 397 days from their respective dates of issue.
The commercial paper notes issued under this program are unsecured. They will rank at least 'pari passu' (equally) with all of Moody's other unsecured and unsubordinated indebtedness.