Verizon prices separate exchange, cash offers for 13 series of notes

By Wendy Van Sickle

Columbus, Ohio, June 15 – Verizon Communications Inc. announced pricing in its two sets of separate offers to exchange or repurchase for cash 13 series of its outstanding notes until 5 p.m. ET on June 15.

The exchange consists of 13 separate private offers being made to qualified institutional buyers under Rule 144A and non-U.S. persons under Rule 902 for newly issued debt securities of Verizon.

In exchange, Verizon is offering new 4.329% notes due Sept. 21, 2028, with the coupon set using the yield of the 2.875% U.S. Treasury security due May 15, 2028 plus 143 basis points, according to a company update on Friday.

The minimum issue condition requires that Verizon issue at least $1 billion of notes, and that condition may not be waived.

The maximum principal amount of new notes that Verizon will issue in the exchange offers will not exceed $6.2 billion, unless waived.

Pricing for the fixed-rate notes was set at 11 a.m. ET on June 15 using a reference security plus a fixed spread for a total consideration in new notes per $1,000 principal amount as follows:

• For the $991,486,000 2.625% notes due 2020, $999.12 with pricing set using the 1.375% Treasury note due Feb. 15, 2020 plus 15 bps;

• For the $861,617,000 3.45% notes due 2021, $1,012.72, with pricing set using the 2.625% Treasury note due May 15, 2021 plus 30 bps;

• For the $1,334,842,000 4.6% notes due 2021, $1,042.00, with pricing set using the 2.625% Treasury note due May 15, 2021 plus 35 bps;

• For the $873,757,000 1.75% notes due 2021, $960.90 with pricing set using the 2.625% Treasury note due May 15, 2021 plus 40 bps;

• For the $1,226,930,000 3% notes due 2021, $996.46, with pricing set using the 2.625% Treasury note due May 15, 2021 plus 45 bps;

• For the $1,628,716,000 3.5% notes due 2021, $1,012.30 with pricing set using the 2.625% Treasury note due May 15, 2021 plus 45 bps;

• For the $1,285,234,000 2.946% notes due 2022, $986.63, with pricing set using the 2.75% Treasury note due May 31, 2023 plus 55 bps;

• For the $1.85 billion 3.125% notes due 2022, $992.86, with pricing set using the 2.75% Treasury note due May 31, 2023 plus 55 bps;

• For the $1,464,954,000 2.45% notes due 2022, $962.60, with pricing set using the 2.75% Treasury note due May 31, 2023 plus 60 bps;

• For the $5,702,898,000 5.15% notes due 2023, $1,079.27, with pricing set using the 2.75% Treasury note due May 31, 2023 plus 70 bps; and

• For the $1.25 billion 4.15% notes due 2024, $1,025.69, with pricing set using the 2.75% Treasury note due May 31, 2023 plus 85 bps.

For the $1.5 billion of floating-rate notes due 2020, the total consideration will be $1,012.50, and for the $1.4 billion floating-rate notes due 2022 it will be $1,022, as announced at the launch of the offers.

Holders also will receive accrued interest to but excluding the settlement date.

Each exchange offer for a series of notes is conditioned on the completion of the corresponding cash offer for that series.

Global Bondholder Services Corp. (866 470-3800, 212 430-3774 or gbsc-usa.com/eligibility/Verizon) is the information agent and the exchange agent.

Cash offers

The cash tender consisted of 13 separate offers with the maximum aggregate amount of $250 million.

Pricing for the fixed-rate notes was set at 11 a.m. ET on June 15 using a reference security plus a fixed spread for a total consideration in cash per $1,000 principal amount as follows:

• For the $991,486,000 2.625% notes due 2020, $999.12 with pricing set using the 1.375% Treasury note due Feb. 15, 2020 plus 15 bps;

• For the $861,617,000 3.45% notes due 2021, $1,012.72, with pricing set using the 2.625% Treasury note due May 15, 2021 plus 30 bps;

• For the $1,334,842,000 4.6% notes due 2021, $1,042.00, with pricing set using the 2.625% Treasury note due May 15, 2021 plus 35 bps;

• For the $873,757,000 1.75% notes due 2021, $960.90 with pricing set using the 2.625% Treasury note due May 15, 2021 plus 40 bps;

• For the $1,226,930,000 3% notes due 2021, $996.46, with pricing set using the 2.625% Treasury note due May 15, 2021 plus 45 bps;

• For the $1,628,716,000 3.5% notes due 2021, $1,012.30 with pricing set using the 2.625% Treasury note due May 15, 2021 plus 45 bps;

• For the $1,285,234,000 2.946% notes due 2022, $986.63, with pricing set using the 2.75% Treasury note due May 31, 2023 plus 55 bps;

• For the $1.85 billion 3.125% notes due 2022, $992.86, with pricing set using the 2.75% Treasury note due May 31, 2023 plus 55 bps;

• For the $1,464,954,000 2.45% notes due 2022, $962.60, with pricing set using the 2.75% Treasury note due May 31, 2023 plus 60 bps;

• For the $5,702,898,000 5.15% notes due 2023, $1,079.27, with pricing set using the 2.75% Treasury note due May 31, 2023 plus 70 bps; and

• For the $1.25 billion 4.15% notes due 2024, $1,025.69, with pricing set using the 2.75% Treasury note due May 31, 2023 plus 85 bps.

For the $1.5 billion of floating-rate notes due 2020, the total consideration will be $1,012.50, and for the $1.4 billion floating-rate notes due 2022 it will be $1,022, as announced at the launch of the offers.

Holders also will receive accrued interest to but excluding the settlement date.

Each cash offer for a series is conditioned on the completion of the corresponding exchange offer for that series.

Global Bondholder Services Corp. (866 470-3800, 212 430-3774 or gbsc-usa.com/Verizon) is the information agent.

Verizon is a New York City-based telecommunications company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.