US incumbent Verizon Communications has made its long-expected trip to the European debt market, announcing a three-tranche offering denominated in euros and sterling as it looks to diversify its investor base.
The New York-based giant has mandated…
US incumbent Verizon Communications has made its long-expected trip to the European debt market, announcing a three-tranche offering denominated in euros and sterling as it looks to diversify its investor base.
The New York-based giant has mandated Credit Suisse, Deutsche Bank, RBS and Santander to act as joint bookrunners on the issuance.
Verizon will put the proceeds of the offering – reported to be between US$4bn and US$6.7bn – towards it US$130bn acquisition of Vodafone Group’s 45% stake in their joint venture Verizon Wireless. That transaction is expected to close later this month.
The new debt issue will consist of two euro tranches maturing 2021 and 2025, and a sterling tranche due 2033, according to market reports.
Last week the US operator priced US$500m of 40-year baby bonds as it tapped the retail market in another bid to diversify its investor base. That followed its record US$49bn corporate bond last autumn, which was bought up by institutional investors.
That bond was originally going to be made up in part by European offerings, but Verizon decided that was not necessary due to the voracious appetite of US investors for its eight-tranche US dollar megabond.
