Verizon Communications prices offer for $1.25 billion 8.95% notes

By Jennifer Chiou

New York, Nov. 9 - Verizon Communications Inc. announced the pricing terms in its previously announced cash tender offer for its $1.25 billion principal amount of 8.95% notes due 2039.

For each $1,000 principal amount of notes, the company will pay $1,864.63. 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 tender offer was set to end at 5 p.m. ET on Nov. 9.

Tendered notes could be withdrawn at any time before the offer expires.

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.

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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