Summary
S&P Global Inc. (SPGI) has announced the pricing of a new offering of $500 million in aggregate principal amount of 2.95% senior notes due 2027. These notes are being issued in a private placement under Rule 144A and Regulation S. The primary use of the proceeds from this debt issuance is to fund the redemption of a portion, or all, of their outstanding 5.900% Senior Notes due 2017, which carry a significantly higher interest rate. Any remaining proceeds will be used for general corporate purposes. This move suggests a proactive approach to managing the company's debt structure and optimizing its interest expense.
Key Highlights
- 1S&P Global priced a $500 million offering of 2.95% senior notes due 2027.
- 2The offering is a private placement transaction under Rule 144A and Regulation S.
- 3The company intends to use the proceeds to redeem its 5.900% Senior Notes due 2017.
- 4This debt refinancing is expected to reduce the company's overall interest expense.
- 5The new notes are guaranteed by S&P Global's subsidiary, Standard & Poor’s Financial Services LLC.
- 6The offering is expected to close on September 22, 2016.
- 7The press release announcing the pricing is attached as Exhibit 99.1.