By Jennifer Chiou
New York, March 18 - Verizon Communications Inc. received and accepted tenders for $4,121,846,000 of notes in its tender offer for $8.2 billion of notes issued in eight series.
The notes are listed in order of acceptance priority level, and the company accepted tenders for the following:
• $619,409,000 of Cellco Partnership and Verizon Wireless Capital LLC's $1 billion 8.5% notes due 2018;
• $564,347,000 of Verizon's $1.3 billion outstanding 8.75% notes due 2018;
• $156,672,000 of Alltel Corp.'s $300 million outstanding 7% debentures due 2016;
• $651,676,000 of Verizon's $1.25 billion outstanding 5.55% notes due 2016;
• $353,031,000 of Verizon's $750 million outstanding 5.5% notes due 2017;
• $266,285,000 of GTE Corp.'s $600 million outstanding 6.84% debentures due 2018;
• $747,484,000 of Verizon's $1.5 billion outstanding 6.1% notes due 2018; and
• $762,942,000 of Verizon's $1.5 billion outstanding 5.5% notes due 2018.
The purchase prices per $1,000 principal amount of notes, reference yields and fixed spreads are noted in the table below.
As previously reported, there was $2.25 billion of the 8.5% notes outstanding, but only $1 billion was available to be tendered in the offer because Cellco Partnership and Verizon Wireless Capital issued a redemption notice for $1.25 billion of the notes on Feb. 28.
The tender offers began on March 10 and ended at 5 p.m. ET on March 17.
The prices were set by reference to the bid-side price of a reference U.S. Treasury security at 2 p.m. ET on March 17 plus a fixed spread.
The reference Treasury used was the 1.5% Treasury note due Feb. 28, 2019 for the 8.5% notes, 8.75% notes, 6.84% debentures, 6.1% notes and 5.5% notes due 2018, the 0.25% Treasury note due Feb. 29, 2016 for the 7% debentures and 5.55% notes and the 0.625% Treasury note due Feb. 15, 2017 for the 5.5% notes due 2017.
The company also will pay accrued interest up to but excluding the settlement date.
The offers were conditioned on financing. As previously reported, Verizon priced $4.5 billion of senior notes (Baa1/BBB+/A-) in five tranches on March 10.
The dealer managers were Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106 collect), Mitsubishi UFJ Securities (USA), Inc. (212 405-7481 collect), RBC Capital Markets, LLC (877 381-2099 or 212 618-7822 collect) and Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760 collect). The information agent and the depositary was Global Bondholder Services Corp. (866 470-3800 or 212 430-3774 collect).
Verizon is a New York City-based telecommunications company.
Verizon tender offer pricing
| Notes | Reference yield | Fixed spread | Purchase price
|
| 8.5% notes due 2018 | 1.554% | 60 bps | $1,279.63
|
| 8.75% notes due 2018 | 1.554% | 60 bps | $1,288.35
|
| 7% debentures due 2016 | 0.351% | 30 bps | $1,125.26
|
| 5.55% notes due 2016 | 0.351% | 25 bps | $1,093.62
|
| 5.5% notes due 2017 | 0.728% | 30 bps | $1,133.22
|
| 6.84% debentures due 2018 | 1.554% | 25 bps | $1,196.85
|
| 6.1% notes due 2018 | 1.554% | 20 bps | $1,170.07
|
| 5.5% notes due 2018 | 1.554% | 5 bps | $1,146.91
|
© 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.
