Summary
Moody's Corporation (MCO) announced the closing of its public offering of $300 million aggregate principal amount of 3.250% Senior Notes due 2050. The offering, which was registered under a previously filed Form S-3, was successfully completed on May 20, 2020. The net proceeds from this issuance are intended to be used for the repayment or redemption of $300 million of the Company's 3.250% senior unsecured notes maturing in June 2021. These new notes carry a fixed interest rate of 3.250% and mature on May 20, 2050, with semiannual interest payments due on May 20 and November 20. The notes include provisions for early redemption by Moody's, with specific terms for redemption before November 20, 2049, and a mandatory redemption at a premium upon a Change of Control Triggering Event. The associated Indenture includes covenants restricting the Company's ability to incur liens, enter into sale and leaseback transactions, and merge or sell substantially all assets, along with standard default provisions.
Key Highlights
- 1Moody's Corporation successfully closed a $300 million public offering of 3.250% Senior Notes due 2050.
- 2The net proceeds are designated to retire $300 million of existing senior unsecured notes maturing in June 2021.
- 3The new notes have a long-term maturity of May 20, 2050.
- 4The notes bear a fixed interest rate of 3.250% per year.
- 5The offering was registered under Moody's Form S-3 (Registration No. 333-236611).
- 6The Indenture includes covenants that limit certain corporate actions such as liens, sale-leasebacks, and mergers.
- 7The notes may be subject to mandatory purchase at 101% of principal plus accrued interest upon a Change of Control Triggering Event.