Summary
Moody's Corporation (MCO) filed an 8-K on March 3, 2017, reporting the successful closing of a public offering of $800 million in aggregate principal amount of notes. This offering consisted of $500 million of 2.750% Senior Notes due 2021 and $300 million of Floating Rate Notes due 2018. The issuance was registered under a Form S-3 filing made on February 23, 2017. The net proceeds from this offering are designated for general corporate purposes, which include working capital, capital expenditures, potential acquisitions or investments, repayment of existing debt, and the repurchase of the company's common stock. This move indicates Moody's proactive approach to managing its capital structure and funding its growth initiatives and shareholder return programs.
Key Highlights
- 1Moody's Corporation closed a public offering of $800 million in notes on March 2, 2017.
- 2The offering comprised $500 million in 2.750% Senior Notes due December 15, 2021.
- 3The offering also included $300 million in Floating Rate Notes due September 4, 2018, with an interest rate tied to three-month LIBOR plus 0.35%.
- 4Net proceeds are earmarked for general corporate purposes, including working capital, capital expenditures, acquisitions, debt repayment, and stock repurchases.
- 5The notes were issued under an Indenture between Moody's and Wells Fargo Bank, National Association, as trustee.
- 6The Floating Rate Notes bear interest quarterly, while the 2021 Notes pay interest semi-annually.
- 7The Indenture includes covenants that limit certain actions, such as incurring liens and engaging in sale and leaseback transactions, and a provision for accelerated repayment upon a Change of Control Triggering Event.