Summary
Moody's Corporation (MCO) announced the successful closing of its public offering of $1.2 billion in aggregate principal amount of senior notes, comprising $600 million of 2.000% Senior Notes due 2031 and $600 million of 2.750% Senior Notes due 2041. The offering was registered under a previously filed Form S-3 and closed on August 19, 2021. The net proceeds from this debt issuance are earmarked for general corporate purposes, notably including the partial funding of the approximately $2.0 billion acquisition of RMS Risk Management Solutions India Pte Ltd.
Key Highlights
- 1Closed public offering of $1.2 billion in senior notes: $600 million of 2.000% Senior Notes due 2031 and $600 million of 2.750% Senior Notes due 2041.
- 2Net proceeds to be used for general corporate purposes, including a potential acquisition.
- 3Significant portion of proceeds may fund the $2.0 billion acquisition of RMS Risk Management Solutions India Pte Ltd.
- 4Notes issued under an indenture with Wells Fargo Bank, National Association, as trustee.
- 5Notes bear fixed interest rates and mature in 2031 and 2041.
- 6Indenture includes covenants restricting liens, sale and leaseback transactions, and fundamental corporate changes.
- 7Provisions for redemption at Moody's option and potential mandatory purchase upon a Change of Control Triggering Event.
Frequently Asked Questions
This 8-K filing announces the closing of Moody's Corporation's public offering of $1.2 billion in senior notes and provides details about the terms of these notes and their intended use of proceeds.
The net proceeds are intended for general corporate purposes, with a significant mention of potentially funding, in part, the acquisition of RMS Risk Management Solutions India Pte Ltd for approximately $2.0 billion.
The offering consists of $600 million of 2.000% Senior Notes due August 19, 2031, and $600 million of 2.750% Senior Notes due August 19, 2041. Interest is payable semi-annually.
Yes, the indenture governing the notes includes covenants that limit Moody's ability to incur liens or enter into sale and leaseback transactions. It also contains provisions for mandatory purchase upon a 'Change of Control Triggering Event' and allows for redemption at Moody's option under certain conditions.