By Wendy Van Sickle
Columbus, Ohio, June 29 – Verizon Communications Inc. is planning an offer to exchange up to $2.5 billion of floating-rate notes due 2022 and up to $2.5 billion of floating rate notes due 2025 issued to Vodafone Group plc for identical notes that can be publicly traded, according to an S-4 filing with the Securities and Exchange Commission.
The original notes were issued on Feb. 21, 2014 as a partial payment for Verizon’s $130 billion acquisition of Vodafone’s indirect 45% interest in Cellco Partnership, which does business as Verizon Wireless.
Verizon entered into an exchange and registration rights agreement with Vodafone at that time in which it agreed to use commercially reasonable efforts to complete an exchange offer for each series of the original notes, which would allow Vodafone to sell the notes into the market. The purpose of the planned exchange is to satisfy that obligation.
The exchange notes would be identical to the original notes except that the transfer restrictions, registration rights and additional interest provisions applicable to the original notes do not apply to the exchange notes.
Verizon is a New York City-based telecommunications company.
| Issuer: | Verizon Communications Inc.
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| Issue: | Exchange notes
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| Amount: | $5 billion
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| Notes due 2022
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| Amount: | $2.5 billion
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| Maturity: | Feb. 21, 2022
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| Interest: | Libor plus 122.2 basis points, payable quarterly
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| Notes due 2025
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| Amount: | $2.5 billion
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| Maturity: | Feb. 25, 2025
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| Interest: | Libor plus 137.2 bps, payable quarterly
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