By Andrea Heisinger
New York, Oct. 27 - Verizon Communications Inc. sold $4.5 billion of senior notes (A3/A-/A) in four tranches late on Thursday, a source who worked on the trade said.
Full terms were not available at press time.
The $750 million of 1.25% three-year notes were sold at a spread of Treasuries plus 75 basis points.
A $1.25 billion tranche of 2% five-year notes priced at Treasuries plus 95 bps.
There was a $1.75 billion tranche of 3.5% 10-year paper priced at 120 bps over Treasuries.
Finally, there was $750 million of 4.75% 30-year bonds sold at Treasuries plus 137.5 bps.
The deal was talked at a minimum of $2 billion, and the size increased based on investor demand, a source said.
Bookrunners were Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and UBS Securities LLC.
Proceeds will be used to retire all or a portion of $600 million of 6.875% notes due 2012, $1 billion of 7.375% notes due 2012, $350 million of 6.125% notes due 2013, $500 million of 6.125% notes due 2012 and $1 billion of 6.875% notes due 2012 along with repayment of commercial paper.
The broadband and telecommunications company is based in New York City.
| Issuer: | Verizon Communications Inc.
|
| Issue: | Senior notes
|
| Amount: | $4.5 billion
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, UBS Securities LLC.
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 3
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | Nov. 3, 2014
|
| Coupon: | 1.25%
|
| Spread: | Treasuries plus 75 bps
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 1, 2016
|
| Coupon: | 2%
|
| Spread: | Treasuries plus 95 bps
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Nov.1, 2021
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 120 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | Nov. 1, 2041
|
| Coupon: | 4.75%
|
| Spread: | Treasuries plus 137.5 bps
|
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