Mars Raises $1 Billion Private Debt Ahead Of Public Bonds

Mars Inc. is raising approximately $1 billion through privately-placed bonds to repay bank loans used to acquire food maker Kellanova, Silas Brown, Kat Hidalgo, and Josyana Joshua reported for Bloomberg News.

Mars is known for brands like Skittles and M&M's. I Photo: M&M's USA Facebook

The high-grade private debt, denominated in sterling and dollars, was offered to institutional investors in tranches due in five, nine, and 14 years, according to sources who spoke on condition of anonymity due to the private nature of the transaction.

Mars, known for brands like Skittles and M&M's, is utilizing the U.S. private placement market ahead of a larger public investment-grade bond issuance expected in the coming weeks.

Citigroup Inc. and JPMorgan Chase & Co. arranged the transaction, though representatives for both banks declined to comment. Mars also did not respond to requests for comment.

In August, Mars secured a $29 billion bridge loan, with plans to replace it with longer-term corporate debt, including both private and public financing options.