By Devika Patel and Cristal Cody
Knoxville, Tenn., March 12 – Verizon Communications Inc. priced $25 billion of senior notes in nine parts on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The final order book was $104.3 billion, a source said.
There were floating-rate senior notes in two tranches and fixed-rate notes in seven tranches.
The company sold $750 million of two-year floaters at SOFR plus 50 basis points with a price of par.
Verizon priced $750 million of three-year floaters at SOFR plus 79 bps with a price of par.
The company priced $1.75 billion of 0.75% three-year notes. These notes priced at 99.994.
Verizon sold $2.75 billion of 1.45% five-year notes at 99.803.
The company sold $3 billion of 2.1% seven-year notes. These notes priced at 99.955.
There was $4.25 billion of 2.55% 10-year notes. These notes priced at 99.589.
The company priced $3.75 billion of 3.4% 20-year notes at 99.942.
Verizon sold $4.5 billion of 3.55% 30-year notes at 99.105 and $3.5 billion of 3.7% 40-year notes at 98.989.
Initial price talk on the fixed-rate notes was 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.
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.
| Issuer: | Verizon Communications Inc.
|
| Amount: | $25 billion
|
| Description: | Floating-rate senior notes and fixed-rate senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC, Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC
|
| Trade date: | March 11
|
| Settlement date: | March 22
|
|
|
| Three-year floaters
|
| Amount: | $750 million
|
| Issue: | Floating-rate notes
|
| Maturity: | March 22, 2024
|
| Coupon: | SOFR plus 50 bps
|
| Price: | Par
|
| Yield: | SOFR plus 50 bps
|
| Call features: | Non-callable
|
|
|
| Five-year floaters
|
| Amount: | $750 million
|
| Issue: | Floating-rate notes
|
| Maturity: | March 20, 2026
|
| Coupon: | SOFR plus 79 bps
|
| Price: | Par
|
| Yield: | SOFR plus 79 bps
|
| Call features: | Non-callable
|
|
|
| Three-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | March 22, 2024
|
| Issue: | Fixed-rate notes
|
| Coupon: | 0.75%
|
| Price: | 99.994
|
| Call feature: | Greater of a make-whole call at Treasuries plus 10 bps and a par call
|
| Price talk: | Treasuries plus 80 bps to 85 bps area
|
|
|
| Five-year notes
|
| Amount: | $2.75 billion
|
| Issue: | Fixed-rate notes
|
| Maturity: | March 20, 2026
|
| Coupon: | 1.45%
|
| Price: | 99.803
|
| Call feature: | Greater of a make-whole call at Treasuries plus 15 bps and a par call until Feb. 20, 2026, then a par call
|
| Price talk: | Treasuries plus 100 bps to 105 bps area
|
|
|
| Seven-year notes
|
| Amount: | $3 billion
|
| Issue: | Fixed-rate notes
|
| Maturity: | March 22, 2028
|
| Coupon: | 2.1%
|
| Price: | 99.955
|
| Call feature: | Greater of a make-whole call at Treasuries plus 15 bps and a par call until Jan. 22, 2028, then a par call
|
| Price talk: | Treasuries plus 120 bps to 125 bps area
|
|
|
| 10-year notes
|
| Amount: | $4.25 billion
|
| Issue: | Fixed-rate notes
|
| Maturity: | March 21, 2031
|
| Coupon: | 2.55%
|
| Price: | 99.589
|
| Call feature: | Greater of a make-whole call at Treasuries plus 20 bps and a par call until Dec. 21, 2030, then a par call
|
| Price talk: | 135 bps area over Treasuries
|
|
|
| 20-year notes
|
| Amount: | $3.75 billion
|
| Issue: | Fixed-rate notes
|
| Maturity: | March 22, 2041
|
| Coupon: | 3.4%
|
| Price: | 99.942
|
| Call feature: | Greater of a make-whole call at Treasuries plus 20 bps and a par call until Sept. 22, 2040, then a par call
|
| Price talk: | 150 bps area over Treasuries
|
|
|
| 30-year notes
|
| Amount: | $4.5 billion
|
| Issue: | Fixed-rate notes
|
| Maturity: | March 22, 2051
|
| Coupon: | 3.55%
|
| Price: | 99.105
|
| Call feature: | Greater of a make-whole call at Treasuries plus 25 bps and a par call until Sept. 22, 2050, then a par call
|
| Price talk: | 160 bps area over Treasuries
|
|
|
| 40-year notes
|
| Amount: | $3.5 billion
|
| Issue: | Fixed-rate notes
|
| Maturity: | March 22, 2061
|
| Coupon: | 3.7%
|
| Price: | 98.989
|
| Call feature: | Greater of a make-whole call at Treasuries plus 25 bps and a par call until Sept. 22, 2060, then a par call
|
| Price talk: | 175 bps area over Treasuries
|
|
|
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