MSCI Prices $700 Million 3.250% Senior Unsecured Notes Due 2033

Rhea-AI Summary

MSCI priced a private offering of $700 million in 3.250% senior unsecured notes due 2033, settling on August 17, 2021. Interest will be paid semi-annually starting February 15, 2022, with accrual beginning August 17, 2021. The proceeds will redeem $500 million of 5.375% senior unsecured notes due 2027 and support general corporate purposes. The notes are offered under Regulation S and Rule 144A and are not registered under the Securities Act. MSCI is a leading provider of decision support tools for the investment community.

Positive

• The issuance of new notes at a lower interest rate (3.250%) compared to existing notes (5.375%) can reduce interest expenses.
• Proceeds from the offering will strengthen MSCI's balance sheet by redeeming higher-interest debt.

Negative

• The company is increasing its debt load with this issuance, which could impact financial flexibility.
• Market risks are implied with forward-looking statements about future performance uncertainty.

MSCI Inc. (NYSE:MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today that it priced its private offering of $700.0 million aggregate principal amount of 3.250% senior unsecured notes due 2033 (the "notes") at an issue price of 100.000% (the "Offering"). Interest on the notes will be 3.250%, and will be payable in cash semi-annually, beginning on February 15, 2022. Interest on the notes will begin accruing from August 17, 2021. The Offering is expected to settle on August 17, 2021, subject to customary closing conditions. MSCI intends to use the net proceeds from the Offering to redeem all $500.0 million aggregate principal amount of its 5.375% senior unsecured notes due 2027 (the “2027 Notes”), as well as for general corporate purposes (including, without limitation, potential purchases of MSCI’s common stock, investments and acquisitions) and to pay related redemption costs. The notes will be senior unsecured obligations of MSCI and will be guaranteed by MSCI and certain of its domestic subsidiaries. This press release does not constitute a notice of redemption with respect to the 2027 Notes.

The notes were offered only to (i) persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and (ii) certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The notes have not been registered under the Securities Act or any state securities laws and therefore may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes, nor does it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

About MSCI Inc.

MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond MSCI’s control and that could materially affect actual results, levels of activity, performance or achievements.

Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in MSCI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission (“SEC”) on February 12, 2021 and in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. If any of these risks or uncertainties materialize, or if MSCI’s underlying assumptions prove to be incorrect, actual results may vary significantly from what MSCI projected. Any forward-looking statement in this press release reflects MSCI’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to MSCI’s operations, results of operations, growth strategy and liquidity. MSCI assumes no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise, except as required by law.

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FAQ

What is MSCI's recent debt offering amount and terms?

MSCI has priced a $700 million private offering of 3.250% senior unsecured notes due 2033.

When will interest payments on MSCI's new notes begin?

Interest on the new notes will start on February 15, 2022.

What are the intended uses of proceeds from MSCI's debt offering?

Proceeds will be used to redeem existing higher-interest notes and for general corporate purposes.

What is the significance of MSCI's note offering for investors?

The offering can improve MSCI's financial position by reducing interest costs and refinancing existing debt.