By Cristal Cody
Eureka Springs, Ark., July 27 –Verizon Communications Inc. sold $6.15 billion of senior notes (Baa1//A-) in five tranches on Wednesday, according to a market source.
Verizon sold $400 million of three-year floating-rate notes at Libor plus 37 basis points.
The company priced $1 billion of 1.375% three-year notes at a spread of 55 bps over Treasuries.
Verizon placed $1 billion of 1.75% five-year notes at Treasuries plus 75 bps.
A $2.25 billion tranche of 2.625% 10-year notes priced with a spread of 115 bps over Treasuries.
Verizon sold $1.5 billion of 4.125% 30-year notes at Treasuries plus 190 bps.
The tranches priced at the tight end of revised price talk.
BofA Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co. and Mizuho Securities USA Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including to repay at maturity $2.25 billion of floating-rate notes due Sept. 15, 2016 and accrued interest, according to a 424B5 filed with the Securities and Exchange Commission.
Verizon is a New York City-based telecommunications company.
| Issuer: | Verizon Communications Inc.
|
| Amount: | $6.15 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co., Mizuho Securities USA Inc.
|
| Trade date: | July 27
|
| Ratings: | Moody’s: Baa1
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $400 million
|
| Maturity: | Aug. 15, 2019
|
| Coupon: | Libor plus 37 bps
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Aug. 15, 2019
|
| Coupon: | 1.375%
|
| Spread: | Treasuries plus 55 bps
|
| Price guidance: | Treasuries plus 60 bps area, tightened from Treasuries plus 75 bps area
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Aug. 15, 2021
|
| Coupon: | 1.75%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 80 bps area, tightened from Treasuries plus 95 bps area
|
|
|
| 10-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | Aug. 15, 2026
|
| Coupon: | 2.625%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 120 bps area, tightened from Treasuries plus 140 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Aug. 15, 2046
|
| Coupon: | 4.125%
|
| Spread: | Treasuries plus 190 bps
|
| Price guidance: | Treasuries plus 195 bps area, tightened from Treasuries plus 215 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
