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Published on 12/20/2021 in the Prospect News Bank Loan Daily.

Moody’s enters $1.25 billion revolving credit facility due 2026

By Wendy Van Sickle

Columbus, Ohio, Dec. 20 – Moody’s Corp. entered into a $1.25 billion senior revolving credit facility due December 2026 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at an adjusted term SOFR rate plus a margin ranging from 80.5 basis points to 122.5 bps, depending on the company’s index debt ratings.

Quarterly facility fees range from 7 bps to 15 bps, also depending on debt ratings.

There is a financial covenant that requires the company to maintain a ratio of total debt to EBITDA of not more than 4 to 1 at the end of any fiscal quarter or not more than 4.5 to 1 as of the end of the first three consecutive quarters immediately following any acquisition with consideration in excess of $500 million, subject to some conditions.

The amended credit agreement from Dec. 17 also incorporates environmental, social and governance pricing adjustments.

The proceeds from the facility will be used for general corporate purposes.

JPMorgan, BofA Securities, Inc. and Citibank, NA are joint bookrunners and joint lead arrangers. Bank of America, NA and Citibank are co-syndication agents. HSBC Bank USA, NA, MUFG Bank, Ltd. and TD Bank, NA are co-documentation agents.

J.P. Morgan Securities LLC is the sustainability structuring agent.

The new facility replaces the $1 billion five-year facility that was scheduled to expire in November 2023.

Moody’s is a New York-based credit ratings and research agency.


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