By Cristal Cody
Tupelo, Miss., Feb. 5 – Verizon Communications Inc. priced a $1 billion offering of 3.875% 10-year green senior notes (Baa1/BBB+/A-) on Tuesday at 99.811 and a spread of Treasuries plus 120 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced on the tight side of guidance in the Treasuries plus 125 bps area. Initial talk was in the Treasuries plus 140 bps area.
BofA Merrill Lynch and Goldman Sachs & Co. LLC were the bookrunners.
The company held fixed income investor calls on Monday for the issue.
Proceeds will be used for eligible green investments.
Verizon is a New York City-based telecommunications company.
| Issuer: | Verizon Communications Inc.
|
| Amount: | $1 billion
|
| Description: | Green senior notes
|
| Maturity: | Feb. 8, 2029
|
| Bookrunners: | BofA Merrill Lynch and Goldman Sachs & Co. LLC
|
| Co-managers: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Loop Capital Markets LLC, R. Seelaus & Co., LLC and Williams Capital Group, LP
|
| Coupon: | 3.875%
|
| Price: | 99.811
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call before Nov. 8, 2028 at greater of par or Treasuries plus 20 bps; thereafter at par
|
| Trade date: | Feb. 5
|
| Settlement date: | Feb. 8
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
| Price guidance: | Treasuries plus 125 bps area, plus or minus 5 bps; initial talk at Treasuries plus 140 bps area
|
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