Verizon offers to exchange eight series for $3.5 billion notes due 2032

By Wendy Van Sickle

Columbus, Ohio, Sept. 2 – Verizon Communications Inc. announced the launch of a waterfall exchange offer for eight outstanding series of debt securities, according to a news release.

The company is offering to exchange the outstanding notes for up to $3.5 billion of new notes due March 15, 2032.

The following notes, listed in order of acceptance priority, are covered by the offer with pricing details given per $1,000 principal amount of existing notes:

• $610,372,000 of 4.15% notes due 2024 (Cusip: 92343VBY9) with pricing to be based on the 0.25% Treasury note due March 15, 2024 plus 25 basis points;

• $1.75 billion of 0.75% notes due 2024 (Cusip: 92343VGF5) with pricing to be based on the 0.25% Treasury note due March 15, 2024 plus 10 bps;

• $750 million of floating-rate notes due 2024 (Cusip: 92343VGD0) for $1,011.25 of new notes;

• $1,499,188,000 of 3.5% notes due 2024 (Cusip: 92343VCR3) with pricing to be based on the 1.5% Treasury note due Oct. 31, 2024 plus 25 bps;

• $2,491,207,000 of 3.376% notes due 2025 (Cusips: 92343VEN0, 92343VEB6, U9221AAY4) with pricing to be based on the 2% Treasury note due Feb. 15, 2025 plus 25 bps;

• $2 billion of 0.85% notes due 2025 (Cusip: 92343VFS8) with pricing to be based on the 0.75% Treasury note due Aug. 31, 2026 plus 5 bps;

• $2.75 billion of 1.45% notes due 2026 (Cusip: 92343VGG3) with pricing to be based on the 0.75% Treasury note due Aug. 31, 2026 plus 25 bps; and

• $2.25 billion of 2.625% notes due 2026 (Cusip: 92343VDD3) with pricing to be based on the 0.75% Treasury note due Aug. 31, 2025 plus 40 bps.

In each case, there is a $50 early participation premium to be paid in additional new notes.

Accrued interest will be paid in cash.

The offer will expire at 5 p.m. ET on Oct. 1.

The early participation deadline and withdrawal deadline is 5 p.m. ET on Sept. 16.

The offer is subject to a minimum condition requiring that at least $1 billion of new notes be issued to settle the early exchange.

There is also a tax condition.

Pricing will be determined at 9 a.m. ET on Sept. 17.

Global Bondholder Services Corp. will act as the information agent and exchange agent (866 470-3800 or 212 430-3774).

Verizon is a New York-based telecommunications company.

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