Verizon Communications to sell nine-tranche offering of notes in megadeal; price talk emerges

By Devika Patel and Cristal Cody

Knoxville, Tenn., March 11 – Verizon Communications Inc. is planning to sell dollar-denominated notes in nine parts, according to a 424B2 filed with the Securities and Exchange Commission. The offering could total $25 billion to $30 million and is expected to price Thursday, according to market sources.

There will be two tranches of floating-rate notes and seven tranches of fixed-rate notes.

The floaters are non-callable. Some of the fixed-rate notes have a make-whole call, and some of the fixed-rate notes have a make-whole call followed by a par call.

More specifically, price talk on the fixed-rate notes is the following:

• Three-year notes in the Treasuries plus 80 basis points to 85 bps area;

• Five-year notes in the Treasuries plus 100 bps to 105 bps area;

• Seven-year notes in the Treasuries plus 120 bps to 125 bps area;

• 10-year notes in the 135 bps area over Treasuries;

• 20-year notes in the 150 bps area over Treasuries;

• 30-year notes in the 160 bps area over Treasuries; and

• 40-year notes in the 175 bps area over Treasuries.

Price talk on the floating-rate notes was not immediately available.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are global coordinators. They are also bookrunners along with Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC.

The company intends to use net proceeds from this offering for general corporate purposes.

Verizon is a New York-based telecommunications company.

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