Verizon Communications has set the terms for new notes it will issue to fund a £600m (US$1bn) redemption of notes held by its former subsidiary Verizon Wireless.
The new paper will also be denominated in sterling, mature in 2024, and will bear interest…
Verizon Communications has set the terms for new notes it will issue to fund a £600m (US$1bn) redemption of notes held by its former subsidiary Verizon Wireless.
The new paper will also be denominated in sterling, mature in 2024, and will bear interest of the yield of the 2.25% UK treasury bond due 7 September 2023 on 11 June plus a spread of 130 basis points.
The US giant plans to exchange the new notes and an undisclosed amount in cash to redeem up to all of Cellco Partnership and Verizon Wireless Capital’s 8.875% notes due 2018, which amount to £600m (US$1bn). The exchange offer is contingent on at least £300m notes being tendered and expires on 25 June.
The move follows the closing of Verizon’s US$130bn acquisition of Vodafone’s 45% stake in their JV Verizon Wireless earlier this year.
In March the New York-based telco performed a larger bond buyback, exchanging more than US$4bn of its notes across eight tranches.
