Moody's Corp. entered into a loan agreement June 6 providing for a $500 million term loan facility, set to mature June 6, 2020.
Proceeds from the facility will be will used to acquire all the outstanding and issued securities of Yellow Maple I BV, Yellow Maple Syrup I BV and Yellow Maple Syrup II BV from a group of sellers including Yellow Maple Coöperatief UA, Yellow Maple Holding Guernsey Ltd., CCP IX LP No. 1, CCP IX LP No. 2, CCP IX Co-Investment LP, Broad Street Prinicpal Investments LLC, HX Luxembourg I SÀ RL and others.
The company also disclosed that the proceeds could be used to pay any related fees and expenses or any certain indebtedness of the targeted companies.
Borrowings have an interest of either the base rate plus an applicable margin or the Eurocurrency rate plus an applicable margin. The base rate loans have an applicable rate range from 0.0% to 0.50% per annum and the Eurocurrency rate loans range from 0.875% to 1.50%, depending on the company's index debt rating.
JPMorgan Chase Bank, the agreement's administrative agent, will also receive a nonrefundable ticking fee from the company. The fee can range from 0.08% of the aggregate commitment amount under the facility to 0.175%, based on the company's index debt rating.
Any commitments under the facility that still exist will terminate effective Jan. 29, 2018, upon the completion of the acquisition or upon the termination of the acquisition.
Additionally, the company amended a separate credit agreement from May 2015 to lower the revolving credit agreement's applicable rate for borrowings to 0.0% to 0.325% per annum for base rate loans and to 0.795% to 1.325% per annum for Eurocurrency rate loans. The company also lowered the facility fee paid to 0.08% to 0.175% for the daily amount of commitments.