Verizon tenders for up to $500 million of 20 series of notes

By Wendy Van Sickle

Columbus, Ohio, Oct. 24 – Verizon Communications Inc. began separate cash tender offers for up to $500 million of notes from 20 series issued by the company and some subsidiaries, according to a press release on Thursday.

The notes, listed in order of acceptance priority, include the following:

• $108,822,000 8.95% notes due 2039 issued by Verizon Communications, with pricing to be set using the 2.875% U.S. Treasury note due May 15, 2049 plus a spread of 109 basis points;

• $156,722,000 8.75% debentures due 2021 issued by GTE LLC, with pricing to be set using the 1.5% U.S. Treasury note due Sept. 30, 2021 plus 33 bps;

• $110,604,000 8% debentures due 2022 issued by Verizon New Jersey Inc., with pricing to be set using the 1.375% U.S. Treasury note due Oct. 15, 2022 plus 37 bps;

• $117,729,000 7.875% debentures due 2032 issued by Alltell Corp., with pricing to be set using the 1.625% U.S. Treasury note due Aug. 15, 2029 plus 109 bps;

• $135,938,000 7.875% debentures due 2029 issued by Verizon New England Inc., with pricing to be set using the 1.625% U.S. Treasury note due Aug. 15, 2029 plus 90 bps;

• $122,499,000 7.875% notes due 2032 issued by Verizon Communications, with pricing to be set using the 1.625% U.S. Treasury note due Aug. 15, 2029 plus a spread of 109 bps;

• $129,168,000 7.75% notes due 2032 issued by Verizon Communications, with pricing to be set using the 1.625% U.S. Treasury note due Aug. 15, 2029 plus 109 bps;

• $124,092,000 7.375% debentures due 2032 issued by Verizon New York Inc., with pricing to be set using the 1.625% U.S. Treasury note due Aug. 15, 2029 plus 108 bps;

• $153,028,000 7.35% notes due 2039 issued by Verizon Communications, with pricing to be set using the 2.875% U.S. Treasury note due May 15, 2049 plus 110 bps;

• $266,066,000 6.94% debentures due 2028 issued by GTE, with pricing to be set using the 1.625% U.S. Treasury note due Aug. 15, 2029 plus 75 bps;

• $196.52 million 6.9% notes due 2038 issued by Verizon Communications, with pricing to be set using the 2.875% U.S. Treasury note due May 15, 2049 plus 103 bps;

• $115,966,000 6.8% debentures due 2029 issued by Alltell, with pricing to be set using the 1.625% U.S. Treasury note due Aug. 15, 2029 plus 85 bps;

• $106,104,000 6.8% notes due 2029 issued by Verizon Communications, with pricing to be set using the 1.625% U.S. Treasury note due Aug. 15, 2029 plus 85 bps;

• $332,665,000 6.4% notes due 2038 issued by Verizon Communications, with pricing to be set using the 2.875% U.S. Treasury note due May 15, 2049 plus 102 bps;

• $441,613,000 6.4% notes due 2033 issued by Verizon Communications, with pricing to be set using the 1.625% U.S. Treasury note due Aug. 15, 2029 plus 118 bps;

• $293,116,000 6.25% notes due 2037 issued by Verizon Communications, with pricing to be set using the 2.875% U.S. Treasury note due May 15, 2049 plus 96 bps;

• $252,011,000 6% notes due 2041 issued by Verizon Communications, with pricing to be set using the 2.875% U.S. Treasury note due May 15, 2049 plus 117 bps;

• $501,152,000 5.85% notes due 2035 issued by Verizon Communications, with pricing to be set using the 2.875% U.S. Treasury note due May 15, 2049 plus 84 bps;

• $146,491,000 5.125% debentures due 2033 issued by Verizon Maryland LLC, with pricing to be set using the 2.875% U.S. Treasury note due May 15, 2049 plus 116 bps; and

• $204,491,000 5.05% notes due 2034 issued by Verizon Communications, with pricing to be set using the 1.625% U.S. Treasury note due Aug. 15, 2029 plus 122 bps.

Pricing will be set at 11 a.m. ET on Nov. 21.

The offers will expire at 11:59 p.m. ET on Nov. 21.

Tenders may be withdrawn until that time.

Interest accrued to the settlement date will also be paid.

Settlement is expected on Nov. 25.

Notes accepted for purchase may be subject to proration if the waterfall tender cap is exceeded. All notes, regardless of acceptance priority level, that are tendered by the early deadline will have priority over any notes tendered after the early deadline and at or prior to the expiration date.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2476), J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) and Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) are the lead dealer managers for the offers.

BofA Securities, Inc., Loop Capital Markets LLC, Wells Fargo Securities, LLC, Academy Securities Inc., R. Seelaus & Co., LLC and Williams Capital Group, LP are co-dealer managers.

Global Bondholder Services Corp. (866 470-4300 or 212 430-3774) is the tender and information agent for the offers.

Verizon is a New York City-based telecommunications company.

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