Coronavirus Update

London Stock Exchange Group Plc - Sells $4.5 Billion of Bonds to Help Refinance Refinitiv

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London Stock Exchange Group Plc

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

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

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.