LSE Sells $4.5 Billion of Bonds to Help Refinance Refinitiv Debt

(Bloomberg) -- London Stock Exchange Group Plc tapped the U.S. high-grade bond market for $4.5 billion to help refinance debt it took on related to its acquisition of Refinitiv Holdings Ltd.

The company sold bonds in five parts, according to a person with knowledge of the matter. The longest portion of the offering, a 20-year security, will yield 100 basis points over Treasuries, said the person, who asked not to be identified as details are private.

The exchange will use the funds to refinance debt incurred in connection with its $27 billion purchase of Refinitiv that was completed earlier this year. It also plans to offer bonds in euros and sterling in its first foray into international debt markets since 2018.

The deal is part of a growing debt-backed merger and acquisition pipeline.

The value of announced M&A deals with potential U.S. investment-grade funding implications has increased to $325 billion -- including the LSE deal -- from $269 billion at the end of February, which is back to pre-Covid-19 levels, Bank of America Corp. strategists led by Hans Mikkelsen wrote in a note.

These companies have flexibility on timing for the debt deals, but “the risk of even higher interest rates could encourage them to frontload any bond issuance,” they said.

Bloomberg LP, the parent company of Bloomberg News, competes with Refinitiv to provide financial news, data and information.

Barclays Plc, Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., HSBC Holdings Plc, Morgan Stanley and Wells Fargo & Co. are managing the bond sale, the person said.

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