New Issue: Verizon gives terms of $4.5 billion note sale in four tranches

By Andrea Heisinger

New York, Nov. 5 - Verizon Communications Inc. gave terms of its $4.5 billion of senior notes (A3/A-/A) in four tranches in an FWP filing with the Securities and Exchange Commission.

Verizon sold $1 billion of 0.7% three-year notes at 99.982 to yield 0.706% with a spread of Treasuries plus 32 basis points. The tranche is non-callable.

A $500 million tranche of 1.1% five-year notes priced at 99.788 to yield 1.144% with a spread of 42 bps over Treasuries. There is a make-whole call at Treasuries plus 10 bps.

The $1.75 billion of 2.45% 10-year notes sold at 99.895 to yield 2.462% with a spread of Treasuries plus 75 bps. The notes have a make-whole call at 12.5 bps over Treasuries until Aug. 1, 2022 and a par call after that date.

Finally, a $1.25 billion tranche of 3.85% 30-year bonds priced at 99.859 to yield 3.858% with a spread of Treasuries plus 97 bps. There is a make-whole call option at 15 bps over Treasuries until May 1, 2042 and a par call after that date.

Barclays, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and RBS Securities Inc. were the bookrunners.

Proceeds will be used to retire prior to maturity all or a portion of $750 million of 4.35% notes due 2013, $1 billion of 4.625% notes due 2013 issued by Verizon Virginia Inc. and $2 billion of 8.75% notes due 2018; to purchase any or all notes validly tendered in connection with a tender offer commenced for any and all of $1.25 billion in 8.95% notes due 2039; and for general corporate purposes.

Verizon was last in the market with a $4.5 billion sale in four tranches on Oct. 27, 2011.

The broadband and telecommunications company is based in New York City.

Issuer:	Verizon Communications Inc.
Issue:	Senior notes
Amount:	$4.5 billion
Bookrunners:	Barclays, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc.
Co-managers:	Citigroup Global Markets Inc., Goldman Sachs & Co., RBC Capital Markets LLC, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., Santander Investment Securities Inc., UBS Securities LLC, Lloyds Securities Inc., SMBC Nikko Capital Markets Ltd., U.S. Bancorp Investments Inc., C.L. King & Associates, Inc., Loop Capital Markets LLC, Samuel A. Ramirez & Co. Inc., Williams Capital Group, LP
Trade date:	Nov. 2
Settlement date:	Nov. 7
Ratings:	Moody's: A3
	Standard & Poor's: A-
	Fitch: A
Three-year notes
Amount:	$1 billion
Maturity:	Nov. 2, 2015
Coupon:	0.7%
Price:	99.982
Yield:	0.706%
Spread:	Treasuries plus 32 bps
Call:	Non-callable
Five-year notes
Amount:	$500 million
Maturity:	Nov. 1, 2017
Coupon:	1.1%
Price:	99.788
Yield:	1.144%
Spread:	Treasuries plus 42 bps
Call:	Make-whole at Treasuries plus 10 bps
10-year notes
Amount:	$1.75 billion
Maturity:	Nov. 1, 2022
Coupon:	2.45%
Price:	99.895
Yield:	2.462%
Spread:	Treasuries plus 75 bps
Call:	Make-whole at Treasuries plus 12.5 to Aug. 1, 2022, par call after
30-year bonds
Amount:	$1.25 billion
Maturity:	Nov. 1, 2042
Coupon:	3.85%
Price:	99.859
Yield:	3.858%
Spread:	Treasuries plus 97 bps
Call:	Make-whole at Treasuries plus 15 bps to May 1, 2042, par call after

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