Verizon Communications tenders for $1.25 billion 8.95% notes due 2039

By Susanna Moon

Chicago, Nov. 2 - Verizon Communications Inc. said it began a cash tender offer for its outstanding $1.25 billion principal amount of 8.95% notes due 2039.

Pricing for each $1,000 principal amount of notes will be 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, according to a company press release.

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

The tender offer will end at 5 p.m. ET on Nov. 9.

Tendered notes may be withdrawn at any time before the offer expires.

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

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.

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