Moody’s enters into $1 billion revolving credit facility due 2023

By Sarah Lizee

Olympia, Wash., Nov. 20 – Moody’s Corp. and some of its subsidiaries on Nov. 14 entered into a $1 billion senior unsecured revolving credit facility due November 2023 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at Libor 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 proceeds from the facility will be used for general corporate purposes.

JPMorgan, Merrill Lynch, Pierce, Fenner & Smith Inc. and Citibank, NA are joint bookrunners and joint lead arrangers. Bank of America, NA and Citibank are co-syndication agents. Barclays Bank plc, MUFG Bank, Ltd. and TD Bank, NA are co-documentation agents.

The new facility replaces the $1 billion five-year facility that was scheduled to expire in May 2020.

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

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