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 parent Seven & i Holdings Co.’s $21 billion acquisition of Speedway gas stations in the U.S. from Marathon Petroleum Corp., according to a company spokesman.
A $10.95 billion issuance would be the largest in the corporate dollar bond market globally since a $12 billion sale from Verizon Communications Inc. in November, data compiled by Bloomberg show. It would also add 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.
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 rated Baa2 by Moody’s Investors Service and AA- by S&P Global Ratings. Moody’s this month downgraded 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.