US telco Verizon Communications is to issue a five-tranche US$6.25bn bond offering, according to an SEC filing.
The offering is divided into: US$1bn in floating rate notes due in 2014; US$1.5bn in 1.95% notes due in 2014; US$1.25bn in 3% notes due in…
US telco Verizon Communications is to issue a five-tranche US$6.25bn bond offering, according to an SEC filing.
The offering is divided into: US$1bn in floating rate notes due in 2014; US$1.5bn in 1.95% notes due in 2014; US$1.25bn in 3% notes due in 2016; US$1.5bn 4.6% notes due in 2021; US$1bn in 6% notes due in 2041.
The lead bookrunners are Barclays Capital, Citigroup, Goldman Sachs, JP Morgan, RBS, Wells Fargo and Merrill Lynch, Pierce, Fenner & Smith.
The SEC filing, which yesterday did not include any figures, was amended today.
It said that the proceeds would be used for the repayment of commercial paper, the “retirement” of a portion of the outstanding notes issued by Verizon’s telephone operator subsidiaries due on or before 1 April 2012, as well as for general corporate purposes.
This follows Verizon’s announcement on 15 March that it had extended its cash tender offer for shares in data centre provider Terremark Worldwide until 31 March.
Verizon said on 27 January that it would pay US$19 per share in cash, which equates to a total equity value of US$14bn.
The expiration date, originally 10 March was extended to 21 March, and now to 31 March.
According to Verizon’s statement, over 23 million shares (approximately 32.85% of the total stock) had been validly tendered by 14 March.
