Moody’s lifts j2 Global notes to Ba3

Moody's Investors Service said it affirmed j2 Global, Inc.'s B1 corporate family rating, B1-PD probability of default rating and SGL-1 speculative grade liquidity rating following the company's announcement that it will reorganize its corporate structure and raise $300 million of new convertible notes due 2029 at the newly formed holding company, j2 Global Holdings, Inc. (Holdco).

Following the corporate restructuring, the existing issuer will become a wholly owned subsidiary of Holdco and change its name to j2 Cloud Services, Inc.

As part of the rating action, Moody's also upgraded the instrument ratings on the existing $250 million senior unsecured notes to Ba3 (LGD3-33%) from B1 (LGD4-56%) given the support from the new unrated convertible notes.

The outlook remains stable.

Proceeds from the new convertible note offering will be used for general corporate purposes.

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