Summary
Moody's Corporation (MCO) announced the successful closing of a public offering of $700 million in aggregate principal amount of 3.750% Senior Notes due 2025 on March 24, 2020. This offering was registered under a Form S-3 filed earlier in February 2020, and the net proceeds are earmarked for general corporate purposes. These notes carry a fixed interest rate of 3.750% per year, with interest payments to be made semi-annually. The notes mature on March 24, 2025. The company has outlined specific terms for redemption, including a make-whole provision before maturity and a redemption at par on or after February 24, 2025. Importantly, the notes are subject to a change of control provision, allowing holders to require MCO to repurchase the notes at 101% of the principal amount upon a triggering event.
Key Highlights
- 1Moody's Corporation successfully issued $700 million in aggregate principal amount of 3.750% Senior Notes due 2025.
- 2The offering closed on March 24, 2020, with net proceeds intended for general corporate purposes.
- 3The notes bear a fixed interest rate of 3.750% and mature on March 24, 2025.
- 4Interest payments are scheduled semi-annually on March 24 and September 24.
- 5The indenture includes provisions for early redemption by Moody's, including a make-whole clause and a mandatory redemption option on or after February 24, 2025.
- 6A 'Change of Control Triggering Event' provision allows noteholders to demand repurchase at 101% of principal.
- 7Covenants in the indenture restrict the company and its subsidiaries regarding liens, sale and leaseback transactions, and mergers or sales of substantially all assets.