Icahn Said to Plan $3.5 Billion Sale of Bonds in Record Offering

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 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.