Verizon prices tender offers for euro-, pound-denominated notes

By Angela McDaniels

Tacoma, Wash., Oct. 23 – Verizon Communications Inc. announced the pricing terms of its tender offers for five series of euro-denominated and pound-denominated notes.

Per €1,000 or £1,000 principal amount, the company will pay €1,094.00 for its 2.375% notes due 2022, €1,010.26 for its 0.5% notes due 2022, €1,055.58 for its 1.625% notes due 2024, £1,190.27 for its 4.75% notes due 2034 and £1,130.53 for its 4.037% notes due 2024.

Holders also will receive accrued interest up to but excluding the settlement date, which is expected to be Oct. 27.

Pricing was set at 9 a.m. ET on Oct. 23 using a reference security plus a fixed spread as follows:

• The euro February 2022 interpolated mid-swap rate plus 5 basis points for the €1.75 billion 2.375% notes;

• The euro June 2022 interpolated mid-swap rate plus 10 bps for the €1 billion 0.5% notes;

• The euro 2024 interpolated mid-swap rate plus 30 bps for the €1.4 billion 1.625% notes;

• The 4.5% U.K. Treasury due Sept. 7, 2034 plus 145 bps for the £850 million 4.75% notes; and

• The 2.75% U.K. Treasury due Sept. 7, 2024 plus 95 bps for the £694,804,000 4.073% notes.

The tender offers began Oct. 16 and will end at 4 a.m. ET on Oct. 24.

In the euro offers, the 2.375% notes have a financing condition acceptance priority level of one, the 0.5% notes have a priority level of two, and the 1.625% notes have a priority level of three.

In the pound offers, the 4.75% notes have a financing condition acceptance priority level of one, and the 4.073% notes have a priority level of two.

The offers are contingent on Verizon having priced an offering of new euro- denominated 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 news release.

If the financing falls short, the company said it will 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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