By Aleesia Forni
Virginia Beach, March 10 - Verizon Communications Inc. priced $4.5 billion of senior notes (Baa1/BBB+/A-) in five tranches during Monday's session, according to a market source.
The sale included $500 million of five-year floating-rate notes with a coupon of Libor plus 77 basis points at par.
A second tranche was $500 million of 2.55% notes due 2019 priced at 95 bps over Treasuries, or 99.88 to yield 2.561%.
The company also came to market with a $1 billion tranche of 3.45% seven-year notes with a spread of 120 bps over Treasuries.
Pricing was at 99.982 to yield 3.453%.
A $1.25 billion tranche of 4.15% 10-year notes priced at 140 bps over Treasuries, or 99.838 to yield 4.17%.
Finally, the company sold $1.25 billion of 5.05% notes due 2034 with a spread of Treasuries plus 135 bps.
The notes sold at 99.925 to yield 5.056%.
All fixed-rate tranches sold at the tight end of talk.
Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA) Inc., RBC Capital Markets LLC and Wells Fargo Securities LLC are the joint bookrunners.
Proceeds will be used to fund tender offers.
Verizon, a New York City-based telecommunications company, was last in the U.S. bond market pricing a record breaking $49 billion of bonds in eight tranches on Sept. 11.
| Issuer: | Verizon Communications Inc.
|
| Issue: | Senior notes
|
| Amount: | $4.5 billion
|
| Joint bookrunners: | Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA) Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC
|
| Trade date: | March 10
|
| Settlement date: | March 17
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: A-
|
|
|
| Floaters due 2019
|
| Amount: | $500 million
|
| Maturity: | June 17, 2019
|
| Coupon: | Libor plus 77 bps
|
| Price: | Par
|
| Yield: | Libor plus 77 bps
|
|
|
| Notes due 2019
|
| Amount: | $500 million
|
| Maturity: | March 17, 2019
|
| Coupon: | 2.55%
|
| Price: | 99.88
|
| Yield: | 2.561%
|
| Spread: | Treasuries plus 95 bps
|
| Price talk: | Treasuries plus 95 bps to 100 bps, tightened from Treasuries plus 105 bps area
|
|
|
| Notes due 2021
|
| Amount: | $1 billion
|
| Maturity: | March 15, 2021
|
| Coupon: | 3.45%
|
| Price: | 99.982
|
| Yield: | 3.452%
|
| Spread: | Treasuries plus 120 bps
|
| Price talk: | Treasuries plus 120 bps to 125 bps, tightened from Treasuries plus 135 bps area
|
|
|
| Notes due 2024
|
| Amount: | $1.25 billion
|
| Maturity: | March 15, 2024
|
| Coupon: | 4.15%
|
| Price: | 99.838
|
| Yield: | 4.17%
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | Treasuries plus 145 bps area, tightened from Treasuries plus mid-150 bps area
|
|
|
| Notes due 2034
|
| Amount: | $1.25 billion
|
| Maturity: | March 15, 2034
|
| Coupon: | 5.05%
|
| Price: | 99.925
|
| Yield: | 5.056%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 140 bps area, tightened from Treasuries plus 155 bps area
|
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