Summary
Moody's Corporation (MCO) filed an 8-K report on June 7, 2018, detailing the issuance and sale of $300 million in 3.250% Senior Notes due 2021. This offering, registered under a prior Form S-3 filing, was executed through an underwriting agreement with major financial institutions. The net proceeds from this debt issuance are designated for general corporate purposes, with a specific mention of potentially repaying a portion of the $350 million outstanding under a loan agreement used to finance the acquisition of Bureau van Dijk Electronic Publishing B.V. The notes carry a fixed interest rate and mature in June 2021, with provisions for redemption by the company and a potential purchase obligation upon a Change of Control Triggering Event.
Key Highlights
- 1Moody's Corporation successfully issued $300 million in 3.250% Senior Notes due 2021.
- 2The notes were issued under an underwriting agreement and registered via a prior Form S-3 filing.
- 3Net proceeds are intended for general corporate purposes, including potential repayment of acquisition-related debt (Bureau van Dijk acquisition).
- 4The notes mature on June 7, 2021, with semiannual interest payments on June 7 and December 7.
- 5The company has the option to redeem the notes on or after May 7, 2021.
- 6Holders have the option for the company to purchase notes upon a 'Change of Control Triggering Event'.
- 7The indenture includes covenants that restrict liens, sale and leaseback transactions, and consolidations/mergers.