Intercontinental Exchange kicks off bond sale for Black Knight buy

May 12, 2022, 11:22 a.m. EDT 1 Min Read

Intercontinental Exchange Inc. is tapping the investment-grade market with a bond sale in as many as six parts to help finance its acquisition of Black Knight Inc.

The longest portion of the offering, a 40-year security, may yield around 240 basis points above Treasuries, according to a person familiar with the matter.

ICE, the owner of the New York Stock Exchange, agreed to buy Black Knight last week in a deal valuing the mortgage software provider at about $13.1 billion. ICE has agreed to pay $85 per share in cash and stock for the Jacksonville, Florida-based company. The bond sale will help finance the cash portion of the deal, said the person, who asked not to be identified as the details are private.

ICE and other exchange operators have been branching out into data and other areas of fintech in recent years as growth stalled in the traditional exchange business.

The sale comes during a turbulent period for investment-grade primary bond markets, when many borrowers have been forced to postpone sales or pay elevated premiums to execute deals amid heavy volatility.

Wells Fargo & Co., Goldman Sachs Group Inc., and Bank of America Corp. are leading the bond sale, the person said.

Bloomberg News

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