Aon Plc’s debt offering to fund its planned acquisition of USI Insurance Services attracted demand roughly five times the deal size, with investors placing about $65 billion in orders. The firm will raise $13.5 billion from a seven-tranche deal, maturities ranging from three to 30 years. Price talk on the longest tenor tightened by 0.35 percentage point to a yield of 1.15 percentage point above Treasuries.

The transaction comes amid rising borrowing costs and inflation concerns ahead of the Federal Reserve rate decision. At least five firms weighing high-grade bond sales stood down. Last month, Aon agreed to buy USI from KKR and other shareholders in an all-cash $17 billion transaction. The purchase, expected to close by year-end, aims to expand Aon’s footprint with midsized corporate clients.

Aon is one of the world’s largest insurance brokers, while USI provides insurance brokerage and consulting services. The company is also expected to sell a $4 billion term loan. Fitch Ratings placed Aon’s debt on Rating Watch Negative, saying the acquisition will “materially increase credit risk for at least the next two years.” Debt is expected to be roughly four times earnings through 2027.

A $13.5 billion note offering would mark the year’s second-largest high-grade bond deal tied to M&A, trailing only Abbott Laboratories’ $20 billion transaction.