By Cristal Cody
Tupelo, Miss., Aug. 1 – Verizon Communications Inc. (Baa1/BBB+/A-) sold $3 billion of 4.5% 16-year notes at 99.718 and a spread of 165 basis points over Treasuries on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes were talked to price with a spread in the Treasuries plus 170 bps area, plus or minus 5 bps.
Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, MUFG, Academy Securities, Inc. and Great Pacific Securities were the bookrunners.
Verizon also priced a $950 million offering on Tuesday of 5.15% notes due Sept. 15, 2050 at par in Taiwan, according to an FWP filing with the SEC.
The company intends to use net proceeds from the offerings for its planned 29 separate cash tender offers for its notes and notes of several of its subsidiaries, which are conditional upon the company raising at least $3 billion from new debt securities.
Verizon is a New York City-based telecommunications company.
| Issuer: | Verizon Communications Inc.
|
| Amount: | $3 billion
|
| Description: | Notes
|
| Maturity: | Aug. 10, 2033
|
| Bookrunners: | Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, MUFG, Academy Securities, Inc. and Great Pacific Securities
|
| Coupon: | 4.5%
|
| Price: | 99.718
|
| Spread: | Treasuries plus 165 bps
|
| Call feature: | Make-whole call at greater of par or Treasuries plus 25 bps
|
| Trade date: | Aug. 1
|
| Settlement date: | Aug. 10
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 170 bps area, plus or minus 5 bps
|
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