Verizon Communications is offering US$4.5bn split across five tranches as it looks to part-fund its proposed US$8.2bn note buyback.
Citigroup, Mitsubishi UFJ, RBC Capital Markets and Wells Fargo are the lead bookrunners on the offering.
Verizon sold…
Verizon Communications is offering US$4.5bn split across five tranches as it looks to part-fund its proposed US$8.2bn note buyback.
Citigroup, Mitsubishi UFJ, RBC Capital Markets and Wells Fargo are the lead bookrunners on the offering.
Verizon sold US$500m of the notes at a floating rate. This paper priced at 100, carries a coupon of LIBOR plus 0.77%, and matures in 2019.
The remaining US$4bn was split between four tranches: US$500m of 2.55% notes due 2019 that priced at 99.88; US$1bn of 3.45% notes due 2021 that priced at 99.98; US$1.25bn of 4.15% notes due 2024 that priced at 99.83; and US$1.25bn of 5.05% notes due 2034 that priced at 99.92.
Verizon is looking to redeem eight tranches of notes maturing between 2016 and 2018 totalling US$8.2bn, which have coupons between 5.5% and 8.75%.
The transaction is Verizon’s biggest of the year so far. The issuance marks the New York-based operator’s third debt offering of 2014 after it raised US$5.4bn selling bonds in Europe and another US$500m from selling baby bonds to retail investors.
Six months ago Verizon sold a record breaking US$49bn bond it sold six months ago to buy Vodafone’s stake in Verizon Wireless.
