Summary
Moody's Corporation (MCO) announced the closing of its public offering of €750 million aggregate principal amount of 0.950% Senior Notes due 2030 on November 25, 2019. The net proceeds from this offering are earmarked for general corporate purposes, with a significant portion expected to be utilized for the repayment or redemption of the company's $500 million 5.50% senior unsecured notes due in September 2020. The new notes carry a low fixed interest rate of 0.950% and mature in February 2030. This issuance represents a strategic move to refinance existing debt with a longer maturity and a lower coupon, potentially improving Moody's' cost of capital and extending its debt profile. The terms of the notes include provisions for early redemption by Moody's and potential put options for noteholders in the event of a change of control, alongside standard covenants limiting the company's ability to incur liens or engage in certain transactions.
Key Highlights
- 1Closing of a €750 million offering of 0.950% Senior Notes due 2030.
- 2Proceeds intended for general corporate purposes, including refinancing $500 million of 5.50% senior notes due September 2020.
- 3The new notes have a fixed interest rate of 0.950% and mature on February 25, 2030.
- 4The company has the option to redeem the notes prior to maturity, subject to a make-whole premium before November 25, 2029, and at par thereafter.
- 5Noteholders have a put option to sell notes back to the company at 101% of principal in the event of a 'Change of Control Triggering Event'.
- 6The indenture includes covenants restricting Moody's and its subsidiaries from incurring certain liens and engaging in sale and leaseback transactions.
- 7Events of default include failure to pay principal on indebtedness of $50 million or more, or acceleration of such indebtedness.