Moody's: Globo notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Globo Comunicacao e Participacoes SA's proposed $200 million in amended senior unsecured notes due in 2022.

Globo's foreign-currency senior unsecured rated debt and issuer ratings were affirmed.

The outlook is stable.

As part of the refinancing of Globo's existing 2022 notes, Globo will transfer to Pontis II Ltd. the option to purchase all of the outstanding existing Globo's $200 million 2022 notes on April 4, 2012.

Pontis will issue senior secured exchangeable notes to be mandatorily exchanged for the new Globo's amended senior unsecured dollar-denominated $200 million 2022 notes, Moody's said.

The issuance is part of Globo's liability management with the objective of reducing the cost of its debt and will not affect its leverage metrics since the proposed amended issuance will refinance the existing notes in its entirety, the agency said.

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