New York, June 11, 2014 -- Moody's Investors Service has affirmed j2 Global, Inc ("j2" or "the company")'s B1 Corporate Family Rating (CFR), B1-PD Probability of Default Rating and SGL-1 Speculative Grade Liquidity (SGL) 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 has 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 proceeds from the new convertible note offering will be used for general corporate purposes. The outlook remains stable.
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