Verizon holders tender 71.73% of $1.25 billion 8.95% notes in offer

By Susanna Moon

Chicago, Nov. 13 - Verizon Communications Inc. said holders tendered $896,624,000, or 71.73%, of its $1.25 billion principal amount of 8.95% notes due 2039 by the end of the tender offer at 5 p.m. ET on Nov. 9 with settlement slated for Nov. 13.

As previously noted, the company will pay $1,864.63 for each $1,000 principal amount of notes. The payout was set at 2 p.m. ET on Nov. 9 using the yield to maturity of the 3% U.S. Treasury note due May 15, 2042 plus a fixed spread of 100 basis points.

The company also will pay accrued interest to but excluding the payment date.

The offer began on Nov. 9.

The offer was conditioned on completion of a notes offering. Proceeds from the notes issue also will be used to retire the company's $750 million of 4.35% notes due 2013, its $2 billion of 8.75% notes due 2018 and Verizon Virginia Inc.'s $1 billion of 4.625% series A debentures due 2013.

Verizon priced $4.5 billion of senior notes in four tranches on Nov. 2.

Goldman Sachs & Co. (800 828-3182 or collect 212 357-6436), Bank of America Merrill Lynch (888 292-0070 or collect 646 855-3401) and J.P. Morgan Securities LLC (866 834-4666 or collect 212 834-4811) are the dealer managers. Global Bondholder Services Corp. (866 736-2200 or collect 212 430-3774) is the information agent and the depositary.

Verizon is a New York-based company that provides broadband and other wireless and wireline communications services to consumer, business, government and wholesale customers. It began the offer on Nov. 2.

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