Tags: Moodys | ratings | bonds | cash

Moody's Said to Plan $600 Million Bonds to Bring Cash to Record

Monday, 07 Jul 2014 01:03 PM

Moody’s Corp., owner of the second-largest credit rater, is planning to raise $600 million in debt that would increase cash to more than $2 billion for the first time since it was spun off by Dun & Bradstreet Corp. in 2000.

The New York-based company may sell six- and 30-year debt, according to a person with knowledge of the offering, who asked not to be identified because terms aren’t set. Proceeds will be used for general corporate purposes that may include share buybacks, acquisitions or debt repayment, the company said in a regulatory filing.

The rater, whose founder John Moody helped start the credit rankings business in 1909, has been increasing its cash level from $245.9 million in 2008. Today’s sale would raise Moody’s cash from $1.79 billion on March 31, according to data compiled by Bloomberg.

Moody’s last sold debt in August, raising $500 million of 4.875 percent 10.5-year notes. Those securities traded at 107.6 cents on the dollar June 2 to yield 3.92 percent, or 139.5 basis points more than comparable-maturity Treasurys, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Standard & Poor’s rates Moody’s BBB+. Moody’s doesn’t rate its own debt.

Shares have rallied 14 percent to $89.55 this year, near the all-time high, as companies boost demand for ratings by taking advantage of borrowing costs that reached record lows for high-yield debt this year and in 2013 for investment-grade obligations.

A basis point is 0.01 percentage point.

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Moody's Corp., owner of the second-largest credit rater, is planning to raise $600 million in debt that would increase cash to more than $2 billion for the first time since it was spun off by Dun & Bradstreet Corp. in 2000.
Moodys, ratings, bonds, cash
246
2014-03-07
Monday, 07 Jul 2014 01:03 PM
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