*

Mars issues 8-part bond for Kellanova ( K ) acquisition

*

Bond offering to raise $26 billion, bookrunners say

*

Mars bond deal may more than double M&A bond issuance for

2025,

IGM reports

(Changes sourcing throughout)

By Shankar Ramakrishnan

March 5 (Reuters) - Family-owned candy giant Mars on

Wednesday priced a $26 billion eight-part investment-grade bond

offering to help finance its takeover of Pringles maker

Kellanova ( K ), in what is expected to be one of the largest

acquisition financing deals this year.

Bank of America ( BAC ), BNP Paribas, Citigroup ( C/PN )

, JP Morgan, Morgan Stanley ( MS ) and Rabobank

were the bookrunners for the offering.

Reuters last week reported the bonds would be announced this

week.

Mars priced bonds with maturities ranging from two years to

40 years, and said it will redeem the notes at a price of 101%

of the principal amount if the acquisition was not completed by

August 20, 2026, it said in a statement.

The bonds headlined what has been a heavy week for

acquisition financing. On Monday, design software maker Synopsys ( SNPS )

raised $10 billion selling six tranches of bonds that

had maturities from two years to 30, to help finance its $34

billion takeover of Ansys.

Demand for Synopsys ( SNPS ) bonds was massive with books covered

some three to five times the issuance size, according to Informa

Global Markets data.

If Mars raises $25 billion, it would become the

eighth-largest deal of all time and more than double the amount

of M&A-related investment-grade bond issuance for the year, said

IGM.

The announcement of the bond was made on a day when markets

were relatively stable after a selloff earlier in the weekm as

U.S. President Trump escalated a global trade war on Tuesday by

imposing 25% tariffs on top trade partners, Canada and Mexico,

citing ineffective border controls.

(Reporting by Shankar Ramakrishnan, Additional reporting by

Chandni Shah; Editing by Nick Zieminski and Varun H K)