US convenience store chain 7-Eleven (Baa2/AA-) raised $10.95bn via an 8 part jumbo offering, 2021’s largest issuance yet. Below are the details of the 8 tranches:
The bonds, expected to be rated Baa2/AA- met with solid investor demand with a combined order book of$62bn, or 5.7x issue size, nearly double the typical peak oversubscription for jumbo transactions as per Bloomberg. While still not close to Aramco’s record-setting $100bn peak book for its $12bn 5-part deal (8.3x), 7-Eleven dwarfed recent trades from Broadcom ($10bn, covered 3.3x), Verizon ($12bn, covered 2.3x), Bristol-Myers ($7bn, covered 4.3x), Gilead ($7.25bn, covered 4.3x) and T-Mobile ($19bn, covered 3.9x). The company also became the most recent company to price its 20Y off the UST 20Y rather than the old long bond. The deal is also the largest M&A bond financing since T-Mobile priced $19bn for its Sprint acquisition in April 2020.