MSCI may lower 3.6x leverage ratio back to targeted range by year-end

By Devika Patel

Knoxville, Tenn., June 9 – MSCI Inc. plans to cut its gross leverage metrics down to its targeted range of 3x to 3.5x by the end of the year.

Management said that the company has a “strong” balance sheet, with $700 million of cash to help it achieve this goal.

“[We have a] strong balance sheet,” chief financial officer Kathleen Winters said at the Morgan Stanley Financials Conference in New York on Wednesday.

“About $700 million of cash,” she said.

Although the company has a gross debt to EBITDA ratio of 3.6x, Winters said that the company expects to be back in its targeted range by the end of the year.

“Our gross leverage ratio is at 3.6x EBITDA.

“Our target range is 3x to 3.5x, so we levered up slightly above that.

“We were at 3.6x at the end of Q1.

“Expect that to come back down to the target range of 3x to 3.5x before the end of the year,” she said.

MSCI is a New York-based provider of analytics and research to money managers and other investors.

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