By Cristal Cody
Tupelo, Miss., March 13 – Verizon Communications Inc. sold $11 billion of notes (Baa1/BBB+/A-) in five tranches on Monday, according to a market source.
The company priced $1.4 billion of five-year floating-rate notes at Libor plus 100 basis points.
Verizon sold $1.85 billion of 3.125% five-year fixed-rate notes at a spread of Treasuries plus 110 bps.
The $3.25 billion tranche of 4.124% 10-year notes priced at a Treasuries plus 160 bps spread.
Verizon brought $3 billion of 5.25% 20-year notes at a spread of 210 bps over Treasuries.
The final $1.5 billion tranche of 5.5% 30-year notes was sold with a Treasuries plus 230 bps spread.
Barclays, BofA Merrill Lynch, Morgan Stanley & Co. LLC and RBC Capital Markets Corp. were the bookrunners.
The company intends to use the proceeds to fund a tender offer that was announced Monday for 30 series of outstanding notes, according to a 424B2 filed with the Securities and Exchange Commission.
Any amounts remaining will be used for general corporate purposes, which may include financing some or all of Verizon’s acquisition of Yahoo! Inc. and discretionary contributions to its qualified pension plans.
Verizon is a New York City-based telecommunications company.
| Issuer: | Verizon Communications Inc.
|
| Amount: | $11 billion
|
| Description: | Notes
|
| Bookrunners: | Barclays, BofA Merrill Lynch, Morgan Stanley & Co. LLC and RBC Capital Markets Corp.
|
| Trade date: | March 13
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Five-year floaters
|
| Amount: | $1.4 billion
|
| Maturity: | March 16, 2022
|
| Coupon: | Libor plus 100 bps
|
|
|
| Five-year notes
|
| Amount: | $1.85 billion
|
| Maturity: | March 16, 2022
|
| Coupon: | 3.125%
|
| Spread: | Treasuries plus 110 bps
|
|
|
| Ten-year notes
|
| Amount: | $3.25 billion
|
| Maturity: | March 16, 2027
|
| Coupon: | 4.124%
|
| Spread: | Treasuries plus 160 bps
|
|
|
| Twenty-year notes
|
| Amount: | $3 billion
|
| Maturity: | March 16, 2037
|
| Coupon: | 5.25%
|
| Spread: | Treasuries plus 210 bps
|
|
|
| Thirty-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | March 16, 2047
|
| Coupon: | 5.5%
|
| Spread: | Treasuries plus 230 bps
|
|
|
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