By Aleesia Forni
Virginia Beach, Va., Sept. 11 - Verizon Communications Inc. priced the largest corporate bond deal in history on Wednesday, selling $49 billion of bonds in eight tranches, market sources said.
The deal included $2.25 billion of floating-rate notes due 2016 sold at par to yield Libor plus 153 basis points.
Verizon also priced $4.25 billion 2.5% notes due 2016 with a spread of Treasuries plus 165 bps, or 99.923 to yield 2.527%.
A $1.75 billion issue of floaters due 2018 priced at par to yield Libor plus 175 bps.
There was a $4.75 billion issue of 3.65% notes due 2018 priced with a spread of 190 bps over Treasuries. The notes sold at 99.996 to yield 3.651%.
The company sold $4 billion 4.5% seven-year notes at 99.87 to yield 4.522%, or Treasuries plus 215 bps.
An $11 billion offering of 5.15% notes due 2023 was sold with a spread of Treasuries plus 225 bps. Verizon priced the notes at 99.676 to yield 5.192%.
There was $6 billion of 20-year notes priced with a spread of Treasuries plus 250 bps. The 6.4% notes sold at 99.9 to yield 6.409%.
Finally, a $15 billion issue of 6.55% bonds due 2043 sold with a spread of Treasuries plus 265 bps. Pricing was at 99.883 to yield 6.559%.
The deal's orderbook reached $101 billion.
Verizon's new issue shattered Apple Inc.'s previous bond record. The computer and mobile communications device company previously held the record of $17 billion, which priced in six tranches in April.
Proceeds will be used to finance Verizon's acquisition of Vodafone's 45% ownership in Verizon Wireless.
Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the active bookrunners.
Passive bookrunners are Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., Mitsubishi UFJ Securities, RBC Capital Markets LLC, RBS Securities Inc. and Wells Fargo Securities LLC.
Verizon is a New York City-based telecommunications company.
| Issuer: | Verizon Communications Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $49 billion
|
| Active bookrunners: | Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Passive bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., Mitsubishi UFJ Securities, RBC Capital Markets LLC, RBS Securities Inc., Wells Fargo Securities LLC.
|
| Co-managers: | Deutsche Bank Securities Inc., Santander Investment Securities Inc.
|
| Trade date: | Sept. 11
|
| Settlement date: | Sept. 18
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| Three-year floaters
|
| Amount: | $2.25 billion
|
| Maturity: | Sept. 15, 2016
|
| Coupon: | Libor plus 153 bps
|
| Price: | Par
|
| Yield: | Libor plus 153 bps
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $4.25 billion
|
| Maturity: | Sept. 15, 2016
|
| Coupon: | 2.5%
|
| Price: | 99.923
|
| Yield: | 2.527%
|
| Spread: | Treasuries plus 165 bps
|
| Make-whole call: | Treasuries plus 30 bps
|
| Price talk: | Treasuries plus 165 bps area, on top of original guidance
|
|
|
| Five-year floaters
|
| Amount: | $1.75 billion
|
| Maturity: | Sept. 14, 2018
|
| Coupon: | Libor plus 175 bps
|
| Price: | Par
|
| Yield: | Libor plus 175 bps
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $4.75 billion
|
| Maturity: | Sept. 14, 2018
|
| Coupon: | 3.65%
|
| Price: | 99.996
|
| Yield: | 3.651%
|
| Spread: | Treasuries plus 190 bps
|
| Make-whole call: | Treasuries plus 35 bps
|
| Price talk: | Treasuries plus 190 bps area, on top of original guidance
|
|
|
| Seven-year notes
|
| Amount: | $4 billion
|
| Maturity: | Sept. 15, 2020
|
| Coupon: | 4.5%
|
| Price: | 99.87
|
| Yield: | 4.522%
|
| Spread: | Treasuries plus 215 bps
|
| Make-whole call: | Treasuries plus 35 bps
|
| Price talk: | Treasuries plus 215 bps area, on top of original guidance
|
|
|
| 10-year notes
|
| Amount: | $11 billion
|
| Maturity: | Sept. 15, 2023
|
| Coupon: | 5.15%
|
| Price: | 99.676
|
| Yield: | 5.192%
|
| Spread: | Treasuries plus 225 bps
|
| Make-whole call: | Treasuries plus 40 bps
|
| Price talk: | Treasuries plus 225 bps area, on top of guidance
|
|
|
| 20-year notes
|
| Amount: | $6 billion
|
| Maturity: | Sept. 15, 2033
|
| Coupon: | 6.4%
|
| Price: | 99.9
|
| Yield: | 6.409%
|
| Spread: | Treasuries plus 250 bps
|
| Make-whole call: | Treasuries plus 40 bps
|
| Price talk: | Treasuries plus 250 bps area, on top of guidance
|
|
|
| 30-year bonds
|
| Amount: | $15 billion
|
| Maturity: | Sept. 15, 2043
|
| Coupon: | 6.55%
|
| Price: | 99.883
|
| Yield: | 6.559%
|
| Spread: | Treasuries plus 265 bps
|
| Make-whole call: | Treasuries plus 45 bps
|
| Price talk: | Treasuries plus 265 bps area, on top of guidance
|
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