New York-based Verizon Communications closed the sale of three European bonds today, which together raised US$5.4bn.
The proceeds are being used to help finance Verizon’s US$130bn acquisition of Vodafone Group’s 45% stake in the two companies’…
New York-based Verizon Communications closed the sale of three European bonds today, which together raised US$5.4bn.
The proceeds are being used to help finance Verizon’s US$130bn acquisition of Vodafone Group’s 45% stake in the two companies’ mobile joint venture, Verizon Wireless.
Verizon said the proceeds would reduce anticipated borrowings under the US$12bn term loan agreement inked in October last year in connection with the Verizon Wireless consolidation.
Under the European bond offering, it sold €1.75bn (US$2.36bn) of 2.375% notes due 2022 at 99.496, to yield 88 basis points more than the mid-swap rate.
Verizon also raised €1.25bn (US$1.69bn) by issuing 3.25% notes due 2026 priced at 99.882 to yield 118 basis points over mid-swaps, and £850m (US$1.38bn) through the sale of 4.75% notes maturing 2034 priced at 99.607, to yield 145 basis points over Gilts.
Credit Suisse, Deutsche Bank, RBS and Santander were joint bookrunners on the offering.
Lloyds, Mizuho, CastleOak Securities, Muriel Siebert & Co, The Williams Capital Group, and Blaylock Robert Van also acted as underwriters.
At the end of January the American telco issued US$500m of 40-year baby bonds, diversifying its investor base by selling to retail buyers.
That was its first bond offering since its US$49bn megabond last autumn – the largest corporate bond ever – which was bought up by institutional investors.
That debt operation was set to include tranches denominated in European currencies, but high demand in the US meant Verizon stayed home.
