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

By Cristal Cody

Eureka Springs, Ark., July 27 – Verizon Communications Inc. priced $6.15 billion of 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 company sold $400 million of three-year floating-rate notes at Libor plus 37 basis points, $1 billion of 1.375% three-year notes at a spread of 55 bps plus Treasuries, $1 billion of 1.75% five-year notes at Treasuries plus 75 bps, $2.25 billion of 2.625% 10-year notes at a spread of 115 bps over Treasuries and $1.5 billion of 4.125% 30-year notes at Treasuries plus 190 bps.

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

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.

The Markit CDX North American Investment Grade index closed the day 1 bp 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.

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