7-Eleven Raises $10.95 Billion via Jumbo Issuance, 2021’s Largest Bond Deal Yet

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 0.625% 2023s and 0.80% 2024s are non-callable for one year while the other coupon issuances do not have a callable feature. The bonds have make whole calls (MWC) with the floater having a 12 month call at par, the 2NC1 having a 1 year call at par and the 3NC1 with a 2 year call at par. The 5Y, 7Y, 10Y, 20Y and 30Y have an MWC at par, callable in 1 month, 2 months, 3 months, 5 months and 6 months prior to maturity respectively. Proceeds will be used together with borrowings under the delayed draw term loan facilities and the equity contribution, to fund the acquisition of the Speedway business from Marathon Petroleum Corp. and certain related transaction costs.

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.