Published on 11/12/2020 in the Prospect News Investment Grade Daily.
New Issue: Verizon Communications prices $12 billion five-part fixed-rate notes
By Devika Patel
Knoxville, Tenn., Nov. 12 – Verizon Communications Inc. priced $12 billion of fixed-rate notes (BBB+/A-) in five parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company issued $2 billion of 0.85% five-year notes priced at 99.99.
There was $2.25 billion of 1.75% notes due Jan. 20, 2031 priced at 99.545.
The company priced $3 billion of 2.65% 20-year notes priced at 99.907.
Verizon sold $2.75 billion of 2.875% 30-year notes priced at 99.74.
There were $2 billion of 3% 40-year notes priced at 99.124.
BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes, which may include acquisitions, and, depending on market conditions, the repayment of outstanding debt.
The telecommunications company is based in New York.
| Issuer: | Verizon Communications Inc.
|
| Amount: | $12 billion
|
| Description: | Fixed-rate notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC
|
| Trade date: | Nov. 10
|
| Settlement date: | Nov. 20
|
| Ratings: | S&P: BBB+
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Maturity: | Nov. 20, 2025
|
| Coupon: | 0.85%
|
| Price: | 99.99
|
| Call feature: | Make-whole call at Treasuries plus 10 bps until Oct. 20, 2025, then a par call
|
|
|
| 10-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | Jan. 20, 2031
|
| Coupon: | 1.75%
|
| Price: | 99.545
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until Oct. 20, 2030, then a par call
|
|
|
| 20-year notes
|
| Amount: | $3 billion
|
| Maturity: | Nov. 20, 2040
|
| Coupon: | 2.65%
|
| Price: | 99.907
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until May 20, 2040, then a par call
|
|
|
| 30-year notes
|
| Amount: | $2.75 billion
|
| Maturity: | Nov. 20, 2050
|
| Coupon: | 2.875%
|
| Price: | 99.74
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until May 20, 2050, then a par call
|
|
|
| 40-year notes
|
| Amount: | $2 billion
|
| Maturity: | Nov. 20, 2060
|
| Coupon: | 3%
|
| Price: | 99.124
|
| Call feature: | Make-whole call at Treasuries plus 25 bps until May 20, 2060, then a par call
|
|
|
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