Verizon Communications has issued US$3.3bn in new paper split between fixed-rate and floating-rate notes.
Verizon plans to use the proceeds to repay the three-year tranche of its term loan credit agreement it signed last year to help finance its…
Verizon Communications has issued US$3.3bn in new paper split between fixed-rate and floating-rate notes.
Verizon plans to use the proceeds to repay the three-year tranche of its term loan credit agreement it signed last year to help finance its US$130bn acquisition of Vodafone’s 45% stake in Verizon Wireless, giving it 100%-control of the operator.
Barclays, JP Morgan and Morgan Stanley are leading the offering, and BofA Merrill Lynch and Citigroup are passive bookrunners.
Verizon offered US$1.3bn non-redeemable floating rate notes due 2017 which priced at par and bear interest at LIBOR plus 0.40% to be reset quarterly.
The telco is raising the remaining US$2bn by issuing 1.35% notes, also due 2017, which priced at 99.95.
The new notes mature in the same year as the three-year loans it is repaying, but those carry interest at the base rate or the eurodollar rate, depending on Verizon’s preference, plus a margin determined by its credit ratings – currently 1.52%.
The issuance marks the New York-based operator’s fourth debt offering, and it is in the midst of offering sterling-denominated notes to refinance Verizon Wireless debt.
In March Verizon sold US$4.5bn split across five tranches to fund a bond buyback. That followed a US$5.4bn European issue and another US$500m from selling baby bonds to retail investors.
Last autumn Verizon sold a record breaking US$49bn bond to buy Vodafone’s Verizon Wireless stake.
