Marsh owners issue $5bn senior notes offering to fund JLT deal

Marsh parent company Marsh & McLennan Companies (MMC) has revealed the terms of six bonds it is offering to finance the deal to acquire JLT.

The issuance of the bonds will generate $5bn, which will also go towards payment of related fees and expenses around the acquisition, repaying JLT indebtedness, and for general corporate purposes.

The terms of the six bonds are as follows:

-          $700 million aggregate principal amount of its 3.500% Senior Notes due 2020,

-          $1,000 million aggregate principal amount of its 3.875% Senior Notes due 2024,

-          $1,250 million aggregate principal amount of its 4.375% Senior Notes due 2029,

-          $500 million aggregate principal amount of its 4.750% Senior Notes due 2039,

-          $1,250 million aggregate principal amount of its 4.900% Senior Notes due 2049 and

-          $300 million aggregate principal amount of its Floating Rate Senior Notes due 2021

The acquisition is expected to complete in Spring 2019 for a price of $5.6bn.

In a statement, MMC said the closing of the notes offering is not contingent on the closing of the acquisition and is expected to occur on 15 January.

JLT Shareholders have overwhelmingly backed the deal and the process of staff members moving over from JLT to Marsh-owned companies has already begun.