Vodafone and Verizon Communications have agreed a US$130bn deal for the US telco to buy the British group’s 45% stake in Verizon Wireless.
Verizon said the consideration would be made up of cash, stock and other items.
The New York-headquartered…
Vodafone and Verizon Communications have agreed a US$130bn deal for the US telco to buy the British group’s 45% stake in Verizon Wireless.
Verizon said the consideration would be made up of cash, stock and other items.
The New York-headquartered telco will pay US$58.9bn in cash funded via a fully executed US$61bn bridge credit agreement with JP Morgan, Morgan Stanley, BofA Merrill Lynch and Barclays.
Verizon said the commitments under the bridge credit agreement will be reduced when it issues permanent financing.
Vodafone will also receive US$60.2bn in Verizon stock to be distributed to the operator’s shareholders.
Verizon will also issue US$5bn notes to Vodafone, transfer its 23.1% minority stake in Vodafone Italy – valued at US$3.5bn – to the British telco, and fund the final US$2.5bn by assuming Vodafone’s net liabilities in the US wireless operator.
The deal is expected to close in Q1 2014 subject to regulatory and shareholder approvals.
Guggenheim, JP Morgan, Morgan Stanley and Paul Taubman served as lead financial advisers to Verizon. Barclays and BofA Merrill Lynch also served as financial advisers to Verizon.
Wachtell, Lipton, Rosen & Katz and Macfarlanes are serving as transaction counsel to Verizon, and Debevoise & Plimpton is advising the telco on its debt financing.
Vodafone has been advised by Goldman Sachs and UBS.
Â
