MSD Investment Returns to Note Market With $350 Million Offering Due 2029
The new notes carry a higher coupon than the company’s June deal, and the proceeds are again aimed at paying down its revolving credit line.
October 8, 2026
MSD Investment Corp. has priced $350 million of 6.875% notes due October 15, 2029. The deal comes less than four months after the company's June note sale.
The notes were placed privately with investors the company reasonably believes are qualified institutional buyers under Rule 144A, and with certain non-U.S. investors under Regulation S. They have not been registered under the Securities Act. The offering priced on October 7 and is expected to close on October 15, subject to customary conditions.
Terms of the New Notes
MSD may redeem the notes in whole or in part at any time before September 15, 2029, at par plus a make-whole premium where applicable. After that date, the notes are redeemable at par. That gives the company a one-month window before maturity to retire them without paying a premium.
The company did not disclose the issue price or the initial purchasers.
Use of Proceeds
MSD expects to use the net proceeds to repay certain outstanding borrowings under its revolving credit facility, for general corporate purposes, or both. General corporate purposes may include investing in portfolio companies in line with the company's investment objective.
Paying down revolver borrowings with note proceeds restores availability under the line, which the company can then draw again to fund new investments.
A Busy Stretch for MSD's Balance Sheet
The offering follows two other financing moves MSD made over the summer. In June, the company priced $300 million of 6.375% notes due June 2029 and set aside part of those proceeds for repaying revolver debt. In July, it amended and restated its senior secured credit facility, raising lender commitments to $920.0 million and extending the facility's maturity to July 2031.
The new notes price at a higher coupon than the June series and mature about four months later. Once this offering closes, both of the company's note series will come due in 2029, while its bank facility runs to 2031.
