The US’ number one mobile operator, Verizon Communications, is issuing US$6.5bn of senior unsecured notes to redeem existing bonds.
The company is offering US$1.5bn of notes due 2021 and priced at 99.699, US$2.5bn of notes maturing in 2024 and priced…
The US’ number one mobile operator, Verizon Communications, is issuing US$6.5bn of senior unsecured notes to redeem existing bonds.
The company is offering US$1.5bn of notes due 2021 and priced at 99.699, US$2.5bn of notes maturing in 2024 and priced at 99.34, and US$2.5bn of notes due 2034 and priced at 99.276. The notes carry interest rates of 3%, 3.5% and 4.4% respectively.
Proceeds from the offering will be primarily used for the redemption of existing notes with maturities ranging from 2015 to 2018.
JP Morgan, Morgan Stanley and Wells Fargo were the main underwriters on the offering, which was rated A- by Fitch.
In early September, Verizon issued a US$870m bond, also to refinance debt. Before that, it sold US$13.3bn of new notes as part of debt exchange offers aimed at reducing borrowing costs, as well as US$3.3bn in new paper split between fixed and floating rate notes.
On Tuesday, the company announced its third quarter results, posting US$31.6bn in revenues, up 4.3% compared to the same period in 2013.
Verizon reportedly mandated TAP Advisors in late September to assist in the sale of its network’s assets including mobile towers, which could fetch up to US$6bn.
Verizon has a substantial debt load since its acquisition of Vodafone’s 45% stake in Verizon Wireless for US$130bn earlier this year. The deal was partly financed with a record-breaking US$49bn notes offering.
