Verizon prices $6.15 billion; credit spreads improve; Unilever unchanged; Capital One firms

By Cristal Cody

Eureka Springs, Ark., July 27 – Verizon Communications Inc. priced $6.15 billion of senior notes and was the lone high-grade corporate bond issuer for the session on Wednesday amid the release of the Federal Reserve’s policy meeting statement.

The five-tranche deal saw strong demand with order books at more than $29 billion, a market source said.

The Markit CDX North American Investment Grade index closed the day 1 basis point tighter at a spread of 74 bps.

In secondary trading earlier on Wednesday, Unilever Capital Corp.’s 2% senior notes due 2026, which priced on Monday, were unchanged from issuance.

Capital One Financial Corp.’s 3.75% subordinated notes due 2026, which were also brought to market on Monday, traded 3 bps tighter than issuance.

Verizon sells five tranches

Verizon Communications sold $6.15 billion of senior notes in five tranches on Wednesday, according to a market source.

Verizon sold $400 million of three-year floating-rate notes at Libor plus 37 bps.

The company priced $1 billion of 1.375% three-year notes at a spread of 55 bps plus Treasuries.

Verizon priced $1 billion of 1.75% five-year notes at Treasuries plus 75 bps.

The $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.

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.

Unilever flat

Unilever Capital’s 2% senior notes due 2026 that priced on Monday remained unchanged from issuance at 60 bps offered in the secondary market, a source said.

Unilever Capital sold $700 million of the notes (A1/A+/) on Monday at a spread of 60 bps plus Treasuries.

The U.S. office of the Dutch and English consumer goods company is in Englewood Cliffs, N.J.

Capital One tightens

Capital One Financial’s 3.75% subordinated notes due 2026 were seen at 219 bps offered in secondary trading, according to a market source.

Capital One Financial priced $1.5 billion of the 10-year subordinated notes (Baa1/BBB-/A-) on Monday at a spread of 222 bps over Treasuries.

The financial services company is based in McLean, Va.

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