By Andrea Heisinger
Omaha, April 1 - Verizon Communications Inc. priced $4 billion of notes (A3/A/A+) in three tranches Tuesday, an informed source said.
A $1.25 billion tranche of 5.25% five-year notes priced at 99.579 to yield 5.346%, or Treasuries plus 270 basis points. This was in line with price talk of 270 bps, a market source said.
A $1.5 billion tranche of 6.1% 10-year notes priced at 99.479 to yield 6.17%, or Treasuries plus 260 bps.
A $1.25 billion tranche of 6.9% 30-year notes priced at 99.724 to yield 7.002%, or Treasuries plus 260 bps.
Both the 10- and 30-year tranches priced tighter than talk of 265 bps more than Treasuries, a market source said.
All of the tranches have make-whole redemption options of Treasuries plus 40 bps.
Bookrunners for the five- and 10-year tranches were Banc of America Securities LLC, Lehman Brothers Inc. and Morgan Stanley & Co. Inc.
Bookrunners for the 30-year tranche were Banc of America Securities, Barclays Capital Inc. and Credit Suisse Securities LLC.
Proceeds will be used to fund the planned acquisition of wireless spectrum licenses by Cellco Partnership in the most recently completed wireless spectrum auction conducted by the Federal Communications Commission.
The communications company is based in New York City.
| Issuer: | Verizon Communications Inc.
|
| Issue: | Notes
|
| Amount: | $4 billion
|
| Trade date: | April 1
|
| Settlement date: | April 4
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| Five-year tranche
|
| Amount: | $1.25 billion
|
| Maturity: | April 15, 2013
|
| Bookrunners: | Banc of America Securities LLC, Lehman Brothers Inc., Morgan Stanley & Co. Inc.
|
| Coupon: | 5.25%
|
| Price: | 99.579
|
| Yield: | 5.346%
|
| Spread: | Treasuries plus 270 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 270 bps
|
|
|
| 10-year tranche
|
| Amount: | $1.5 billion
|
| Maturity: | April 15, 2018
|
| Bookrunners: | Banc of America Securities LLC, Lehman Brothers Inc., Morgan Stanley & Co. Inc.
|
| Coupon: | 6.1%
|
| Price: | 99.479
|
| Yield: | 6.17%
|
| Spread: | Treasuries plus 260 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 265 bps
|
|
|
| 30-year tranche
|
| Amount: | $1.25 billion
|
| Maturity: | April 15, 2038
|
| Bookrunners: | Banc of America Securities LLC, Barclays Capital Inc., Credit Suisse Securities LLC
|
| Coupon: | 6.9%
|
| Price: | 99.724
|
| Yield: | 7.002%
|
| Spread: | Treasuries plus 260 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 265 bps
|
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