Verizon announces exchange results for eight series of notes, pricing terms

By William Gullotti

Buffalo, N.Y., Sept. 17 – Verizon Communications Inc. announced the accepted amounts of its exchange offers for eight series of notes and also pricing terms of the new notes, according to a press release Friday afternoon.

The results are as follows, based on par of $1,000 per note:

• $132,776,000 tendered and accepted of the $610,372,000 of 4.15% notes due 2024 (Cusip: 92343VBY9), with pricing based on the 0.25% Treasury note due March 15, 2024 plus 25 basis points, resulting in an exchange price of $1,087.45 reflecting a reference yield of 0.351% and an exchange yield of 0.601%;

• $750.78 million tendered and accepted of the $1.75 billion of 0.75% notes due 2024 (Cusip: 92343VGF5), with pricing based on the 0.25% Treasury note due March 15, 2024 plus 10 bps, resulting in an exchange price of $1,007.44 reflecting a reference yield of 0.351% and an exchange yield of 0.451%;

• $296,791,000 tendered and accepted of the $750 million of floating-rate notes due 2024 (Cusip: 92343VGD0) for $1,011.25 of new notes;

• $337,906,000 tendered and accepted of the $1,499,188,000 of 3.5% notes due 2024 (Cusip: 92343VCR3), with pricing based on the 1.5% Treasury note due Oct. 31, 2024 plus 25 bps, resulting in an exchange price of $1,084.90 reflecting a reference yield of 0.487% and an exchange yield of 0.737%;

• $1,151,446,000 tendered and accepted of the $2,491,207,000 of 3.376% notes due 2025 (Cusips: 92343VEN0, 92343VEB6, U9221AAY4), with pricing based on the 2% Treasury note due Feb. 15, 2025 plus 25 bps, resulting in an exchange price of $1,086.09 reflecting a reference yield of 0.556% and an exchange yield of 0.806%;

• $595.97 million tendered and accepted of the $2 billion of 0.85% notes due 2025 (Cusip: 92343VFS8), with pricing based on the 0.75% Treasury note due Aug. 31, 2026 plus 5 bps, resulting in an exchange price of $1,000 reflecting a reference yield of 0.86% and an exchange yield of 0.91%;

• $833,533,000 tendered and accepted of the $2.75 billion of 1.45% notes due 2026 (Cusip: 92343VGG3), with pricing based on the 0.75% Treasury note due Aug. 31, 2026 plus 25 bps, resulting in an exchange price of $1,014.62 reflecting a reference yield of 0.86% and an exchange yield of 1.11%; and

• $380,585,000 tendered and accepted of the $2.25 billion of 2.625% notes due 2026 (Cusip: 92343VDD3), with pricing based on the 0.75% Treasury note due Aug. 31, 2025 plus 40 bps, resulting in an exchange price of $1,064.69 reflecting a reference yield of 0.86% and an exchange yield of 1.26%.

Pricing for two of the series of notes (Cusips: 92343VFS8, 92343VGG3) was calculated using the present value of such notes as determined at the applicable price determination date as if the principal amount had been due on the par call date.

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

The new notes, to be issued on the Sept. 20 early settlement date, are for an aggregate principal amount of $4,663,835,000 with a March 15, 2032 maturity date. The notes bear a 2.335% coupon, based on the 1.25% Treasury note due Aug. 15, 2031 plus 100 bps.

The initial cap of $3.5 billion was increased to accept all of the notes tendered by the early deadline.

The offer will technically expire at 5 p.m. ET on Oct. 1. However, the increased cap has been met and no more notes will be accepted in the exchange.

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

There will be no final settlement date.

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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