By Aleesia Forni
Virginia Beach, Oct. 22 – Verizon Communications Inc. priced $6.5 billion of senior notes (Baa1/BBB+/A-) in three tranches, according to a market source and a FWP filed with the Securities and Exchange Commission.
The sale included $1.5 billion of 3% seven-year notes priced at 99.699 to yield 3.048% with a spread of Treasuries plus 115 basis points.
There was also $2.5 billion of 3.5% 10-year notes priced at 99.34 to yield 3.579%, or Treasuries plus 135 bps.
Verizon also sold $2.5 billion of 4.4% 20-year bonds at 99.276 to yield 4.455% with a spread of 145 bps over Treasuries.
All three tranches sold at the tight end of price talk, which had firmed 10 bps to 15 bps from initial guidance.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used primarily to redeem existing notes maturing from 2015 to 2018 and any remaining net proceeds will be used for general corporate purposes.
Verizon is a New York City-based telecommunications company.
| Issuer: | Verizon Communications Inc.
|
| Issue: | Senior notes
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| Amount: | $6.5 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Trade date: | Oct. 22
|
| Settlement date: | Oct. 29
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| Ratings: | Moody’s: Baa1
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| Standard & Poor’s: BBB+
|
| Fitch: A-
|
| Distribution: | SEC-registered
|
|
|
| Seven-year notes
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| Amount: | $1.5 billion
|
| Maturity: | Nov. 1, 2021
|
| Coupon: | 3%
|
| Price: | 99.699
|
| Yield: | 3.048%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | Treasuries plus 120 bps area, tightened from Treasuries plus 130 bps to 135 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to Sept. 1, 2021, then callable at par
|
|
|
| 10-year notes
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| Amount: | $2.5 billion
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| Maturity: | Nov. 1, 2024
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| Coupon: | 3.5%
|
| Price: | 99.34
|
| Yield: | 3.579%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 140 bps area, tightened from Treasuries plus 150 bps to 155 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to Aug. 1, 2024, then callable at par
|
|
|
| 20-year notes
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| Amount: | $2.5 billion
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| Maturity: | Nov. 1, 2034
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| Coupon: | 4.4%
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| Price: | 99.276
|
| Yield: | 4.455%
|
| Spread: | Treasuries plus 145 bps
|
| Price talk: | Treasuries plus 150 bps, tightened from Treasuries plus 160 bps to 165 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to May 1, 2034, then callable at par
|
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