By Devika Patel
Knoxville, Tenn., March 14 – Verizon Communications Inc. offered further details about an $11 billion sale of notes (Baa1/BBB+/A-) that priced in five tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $1.4 billion of five-year floating-rate notes at Libor plus 100 basis points. The notes priced at par.
Verizon sold $1.85 billion of 3.125% five-year fixed-rate notes at a spread of Treasuries plus 110 bps. The notes priced at 99.487.
The $3.25 billion tranche of 4.125% 10-year notes priced at a Treasuries plus 160 bps spread. The notes priced at 99.256.
Verizon brought $3 billion of 5.25% 20-year notes at a spread of 210 bps over Treasuries. The notes priced at 99.23.
The final $1.5 billion tranche of 5.5% 30-year notes was sold with a Treasuries plus 230 bps spread. The notes priced at 99.81.
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
|
| Settlement date: | March 16
|
| 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
|
| Price: | Par
|
| Call feature: | Non-callable
|
|
|
| Five-year notes
|
| Amount: | $1.85 billion
|
| Maturity: | March 16, 2022
|
| Coupon: | 3.125%
|
| Price: | 99.487
|
| Spread: | Treasuries plus 110 bps
|
| Call feature: | Make-whole call at the greater of par and Treasuries plus 20 bps
|
|
|
| Ten-year notes
|
| Amount: | $3.25 billion
|
| Maturity: | March 16, 2027
|
| Coupon: | 4.125%
|
| Price: | 99.256
|
| Spread: | Treasuries plus 160 bps
|
| Call feature: | Make-whole call at the greater of par and Treasuries plus 25 bps
|
|
|
| Twenty-year notes
|
| Amount: | $3 billion
|
| Maturity: | March 16, 2037
|
| Coupon: | 5.25%
|
| Price: | 99.23
|
| Spread: | Treasuries plus 210 bps
|
| Call feature: | Make-whole call at the greater of par and Treasuries plus 35 bps
|
|
|
| Thirty-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | March 16, 2047
|
| Coupon: | 5.5%
|
| Price: | 99.81
|
| Spread: | Treasuries plus 230 bps
|
| Call feature: | Make-whole call at the greater of par and Treasuries plus 35 bps
|
|
|
|
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