Verizon Communications has priced the new notes for its £600m (US$1bn) exchange offering which aims to push out the incumbent’s maturities and refinance the debt on better terms.
The US giant is offering to swap all of its existing…
Verizon Communications has priced the new notes for its £600m (US$1bn) exchange offering which aims to push out the incumbent’s maturities and refinance the debt on better terms.
The US giant is offering to swap all of its existing sterling-denominated 8.875% notes due 2018 for 4.073% notes due 2024 and an amount of cash.
Verizon is offering bondholders £50 in cash as an early exchange premium for each £1000 of notes providing they tender their notes by 18 June. The exchange offer is contingent on at least £300m notes being tendered and expires on 25 June.
The move follows the closing of Verizon’s US$130bn acquisition of Vodafone’s 45% stake in their JV Verizon Wireless earlier this year.
In March the New York-based telco performed a larger bond buyback, exchanging more than US$4bn of its notes across eight tranches.
Meanwhile last week Verizon issued US$3.3bn in new paper split between fixed-rate and floating-rate notes. The telco plans to use the proceeds to repay the three-year tranche of its term loan credit agreement it signed last year to help finance the Vodafone deal.
