BlackRock to Sell Debt in First Offering in Two Years

Dec. 7 (Bloomberg) -- BlackRock Inc., the world’s largest asset manager, plans to sell dollar-denominated bonds in three parts, the company’s first offering since its debut issue more than two years ago.

Proceeds will be used to repay commercial paper, the New York-based asset manager said today in a filing with the U.S. Securities and Exchange Commission. The filing didn’t specify the size of the deal or the maturities being offered.

Blackrock plans to sell three-year notes in addition to the five- and 10-year debt initially planned, according to a person familiar with the offering.

The three-year notes may price to yield about 112.5 basis points more than similar-maturity Treasuries, the five-year debt may yield about 137.5 basis points more than benchmarks, and the 10-year bonds may pay a spread of about 162.5 basis points, said the person, who declined to be identified because terms aren’t set. A basis point is 0.01 percentage point.

BlackRock sold $700 million of 6.25 percent, 10-year notes in September 2007, according to data compiled by Bloomberg.

The securities traded at 109.9 cents on the dollar on Nov. 23 to yield 4.72 percent, or 135 basis points more than similar- maturity Treasuries, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.