Bloomberg News

Icahn Said to Plan $3.5 Billion Sale of Bonds in Record Offering

January 06, 2014

Billionaire Investor Carl Icahn

Billionaire investor Carl Icahn, who has taken stakes and agitated for stockholder-friendly changes at companies from Dell Inc. to Apple Inc., has increased his net worth 3.3 percent this year to $23.6 billion, according to data compiled by Bloomberg. Photographer: Scott Eells/Bloomberg

Icahn Enterprises LP, the holding company for billionaire financier Carl Icahn, is offering $3.5 billion of debt in its largest bond sale ever.

The investing company may sell three-year notes, which cannot be called, and five-year bonds, callable after 2 1/2 years, as soon as this week, according to a person with knowledge of the transaction. It may also issue additional debt from its $500 million of 6 percent securities due August 2020, offered in July 2013 to yield 399 basis points more than similar-maturity Treasuries.

The 6 percent securities were the last bonds sold by Icahn, 77, who became an activist investor after gaining fame as a corporate raider in the 1980s. Icahn, who has taken stakes and agitated for stockholder-friendly changes at companies from Dell Inc. to Apple Inc., has increased his net worth 3.3 percent this year to $23.6 billion, according to data compiled by Bloomberg.

Proceeds of the offering will be used to refinance the company’s 7.75 percent bonds due 2016 and 8 percent debentures due 2018, said the person, who asked not to be identified because terms aren’t set. The New York-based holding announced a tender offer today for the $1.05 billion of 2016 notes and $2.45 billion of 2018 debt, according to a company statement.

Citigroup Inc., Credit Suisse Group AG and Morgan Stanley are managing the offering, which is being issued through Icahn Enterprises LP (IEP:US) and Icahn Enterprises Finance Corp., according to the person. The debt is expected to be sold on Jan. 9.

Icahn Enterprises is rated Ba3 at Moody’s Investors Service and BBB- at Standard & Poor’s, Bloomberg data show.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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Companies Mentioned

  • IEP
    (Icahn Enterprises LP)
    • $105.84 USD
    • 1.49
    • 1.41%
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