Verizon enters $25 billion 364-day delayed-draw term loan

By Wendy Van Sickle

Columbus, Ohio, Feb. 24 – Verizon Communications Inc. entered into a $25 billion 364-day delayed-draw term loan credit agreement on Wednesday with JPMorgan Chase Bank, NA as administrative agent and Morgan Stanley Senior Funding, Inc. as syndication agent, according to an 8-K filing with the Securities and Exchange Commission.

Verizon may draw up to the full $25 million in a single draw until May 28 for general corporate purposes, including the potential acquisition of Spectrum.

The loans have not yet been funded and will mature on the date that is 364 days after the funding date.

Borrowings will bear interest at Libor plus a margin ranging from 62.5 basis points to 112.5 bps, depending on Verizon’s credit ratings. An additional margin of 12.5 bps will be added on Dec. 31, 2021.

There will be a fee ranging from 7 bps to 12.5 bps, depending on ratings, on daily unused commitments through May 28.

The telecommunications company is based in New York.

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