Published on 3/12/2021 in the Prospect News High Yield Daily.
New Issue: MSCI prices $500 million tap of 3 5/8% notes due 2030 at 100.75 to yield 3.502%
By Paul A. Harris
Portland, Ore., March 12 – MSCI Inc. priced a $500 million add-on to its 3 5/8% senior notes due Sept. 1, 2030 (Ba2/BB+) at 100.75, resulting in a 3.502% yield to worst in a Friday drive-by, according to a syndicate source.
The issue price came in the middle of the 100.5 to 101 price talk.
Left lead bookrunner Morgan Stanley & Co. LLC will bill and deliver. Joint bookrunners were BofA Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC.
The New York City-based financial services provider plans to use the proceeds from the Rule 144A and Regulation S with registration rights add-on, plus cash on hand, to redeem all $500 million of its 4¾% senior notes due 2026.
| Issuer: | MSCI Inc.
|
| Amount: | $500 million
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| Maturity: | Sept. 1, 2030
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| Security description: | Add-on to 3 5/8% senior notes due Sept. 1, 2030
|
| Lead bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
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| Joint bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., Citizens Capital Markets Inc., Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Coupon: | 3 5/8%
|
| Price: | 100.75
|
| Yield to worst: | 3.502%
|
| Spread: | 192 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until March 1, 2025, then callable at 101.813
|
| Equity clawback: | 35% at 103.625 until March 1, 2023
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| Trade date: | March 12
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| Settlement date: | March 26
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| Ratings: | Moody's: Ba2
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| S&P: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 100.5 to 101
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| Marketing: | Drive-by
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| Original issue: | $400 million priced in February 2020
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| Fungibility: | Add-on notes will become fungible with the original notes
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| Total issue size: | $900 million
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