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.
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