Aug. 12 at 2:24 AM
Intercontinental Exchange has launched a dollar-denominated investment-grade bond offering, two weeks after announcing its
$6 billion acquisition of MarketAxess. The deal is structured in up to five tranches with maturities ranging from three to 10 years, according to Bloomberg. Initial pricing guidance for the longest-dated tranche is around 1.15 percentage points over U.S. Treasuries.
ICE secured a commitment from Bank of America for up to
$6.25 billion in bridge financing for the MarketAxess acquisition. The bond sale is intended to provide permanent financing and replace the temporary bridge facility.
The acquisition would give the parent of the New York Stock Exchange one of the world’s largest fixed-income trading platforms and expand ICE’s presence in electronic bond markets. Bank of America, Citigroup, Fifth Third Bancorp, Mitsubishi UFJ Financial Group, PNC Financial Services and Wells Fargo are managing the bond sale.
$ICE $MKTX $BAC $C $FITB