Aon Readies $13.5 Billion Bond Sale to Finance USI Insurance Takeover
Aon Plc is launching a $13.5 billion bond sale to finance its $17 billion acquisition of USI Insurance Services. The move comes despite market volatility and rising borrowing costs ahead of a Federal Reserve rate decision.
Why it matters
This transaction represents one of the largest merger-financing deals of 2026, reflecting corporate confidence despite broader economic headwinds.
Add preferred source Aon Plc is seeking about $13.5 billion through a seven-part high-grade bond offering to fund its planned $17 billion acquisition of USI Insurance Services, one of 2026's largest M&A financing deals. Investor interest reached roughly $17 billion after calls last Friday, though the final size could change. The sale comes amid rising borrowing costs, AI-related market jitters, higher oil prices, and the upcoming Federal Reserve rate decision, prompting at least five other issuers to delay their bond sales. Notes range from three to 30 years, with the longest tenor initially priced about 1.5 percentage points over Treasuries. All notes except the 30-year portion carry a 101-cent special redemption if the deal fails by Dec. 1, 2027. Bank of America, Citigroup, HSBC, Morgan Stanley, and Wells Fargo are managing the sale.
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