7-Eleven Inc. is marketing a potential $10.95 billion bond offering, according to people familiar with the matter, in what would be the largest corporate dollar debt sale globally so far this year.
Proceeds would help finance Tokyo-based parentSeven & i Holdings Co.’s $21 billionacquisition of Speedway gas stations in the U.S. fromMarathon Petroleum Corp., according to a company spokesman.
A $10.95 billion issuance would be thelargest in the corporate dollar bond market globally since a$12 billion sale fromVerizon Communications Inc. in November, data compiled by Bloomberg show. It would also add to the350 billion yen ($3.4 billion) that the convenience-store operator raised in a Japanese debt offering for the Speedway deal two months ago.
The new eight-part deal includes a 30-year tranche which is being marketed at about 135 basis points over Treasuries.
To read more about initial price talk on each tranche of the new 7-Eleven deal
The proposed investment-grade notes were ratedBaa2 by Moody’s Investors Service andAA- by S&P Global Ratings. Moody’s this monthdowngraded 7-Eleven’s issuer rating to Baa2 from Baa1, citing a potential increase in debt after the Speedway purchase. S&P said it’s likely to lower 7-Eleven’s, as well as parent Seven & i’s credit ratings by as many as two notches because of added debt due to the acquisition.
Credit Suisse Group AG, Sumitomo Mitsui Banking Corp., BofA Securities, Citigroup Inc. and JPMorgan Chase & Co. are managing the bond sale.
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