7-Eleven Kicks Off Mega Bond Sale to Help Finance Speedway Purchase

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7-Eleven Inc. sold $10.95 billion of bonds to fund its acquisition of Speedway gas stations in the U.S., according to people with knowledge of the matter, after receiving as much as $62 billion of demand from investors.

The issuance marks the largest in the corporate dollar bond market globally since a $12 billion sale from Verizon Communications Inc. in November, according to data compiled by Bloomberg. It also adds to the 350 billion yen ($3.4 billion) that the convenience-store operator raised in a Japanese debt offering for the Speedway deal two months ago.

Proceeds will help finance Tokyo-based parent Seven & i Holdings Co.’s $21 billion acquisition of the gas stations from Marathon Petroleum Corp., according to a company spokesman.

The new eight-part deal includes a 30-year tranche which priced at 105 basis points over Treasuries, after initial discussions in the 135 basis points area, said the people, who asked not to be identified discussing a private transaction.

Read more about initial price talk on each tranche of the new 7-Eleven deal

The proposed notes are rated Baa2 by Moody’s Investors Service and AA- by S&P Global Ratings. Moody’s this month downgraded 7-Eleven’s rating by one notch, citing a potential increase in debt after the Speedway purchase. S&P said it may cut the company’s ratings by as many as two notches because of the added debt load.

Credit Suisse Group AG, Sumitomo Mitsui Banking Corp., Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. managed the bond sale.

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