Verizon holds separate cash offers for five euro, pound note issues

By Susanna Moon

Chicago, Oct. 16 – Verizon Communications Inc. began five separate cash offers to purchase any and all of five series of its euro-denominated and pound-denominated notes until 4 a.m. ET on Oct. 24.

In the euro offers, pricing will be set using a reference security plus a fixed spread as follows, with the notes listed in order of financing condition priority levels:

• €1.75 billion 2.375% notes due 2022 will price using the euro February 2022 interpolated mid-swap rate plus 5 basis points;

• €1 billion 0.5% notes due 2022 will price using the euro June 2022 interpolated mid-swap rate plus 10 bps; and

• €1.4 billion 1.625% notes due 2024 will price using the euro 2024 interpolated mid-swap rate plus 30 bps.

In the pound offers, pricing will be set using a reference security plus a fixed spread as follows, with the notes listed in order of financing condition priority levels:

• £850 million 4.75% notes due 2034 with pricing based on the 4.5% U.K. Treasury due Sept. 7, 2034 plus 145 bps; and

• £694,804,000 4.073% notes due 2024 with pricing based on the 2.75% U.K. Treasury due Sept. 7, 2024 plus 95 bps.

Pricing will be set at 9 a.m. ET on Oct. 23.

Holders also will receive accrued interest to but excluding the settlement date.

Tendered notes may be withdrawn before the end of the offer.

Settlement will occur on Oct. 27.

The offers are contingent on Verizon having priced an offering of new euro- and pound-denominated notes with a weighted average life to maturity that is longer than the euro notes or pound notes being purchased in the offers, according to a company notice.

If the financing falls short, the company said it accept the notes for purchase based on the amount of the new issues.

Barclays Bank plc (+44 20 3134-8515, 800 438-3242 or 212 528-7581), Credit Suisse Securities (Europe) Ltd. (+44 20 7883-8763, 800 820-1653 or 212 325-2476) and Deutsche Bank AG, London Branch (+44 20 7545-8011, 866 627-0391 or 212 250-2955) are the dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880 or lucid-is.com/Verizon) is the information agent and the tender agent.

Verizon is a New York City-based telecommunications company.

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