Gallagher Selling $5 Billion of Bonds to Fund Acquisition (2)

Arthur J. Gallagher & Co. is selling $5 billion of bonds to help fund its $13.45 billion purchase of insurance broker AssuredPartners, the latest blue-chip firm to capitalize on strong investor demand to finance acquisitions.

The longest portion of the five-part offering, a 30-year security, may yield 1.17 percentage point above Treasuries, after initial discussions of 1.45 percentage points, according to a person with knowledge of the matter, who asked not to be identified as the details are private.

The deal has amassed over $31 billion of orders, according to different people with knowledge of the matter.

Gallagher is ...