Verizon begins tender offers for up to $3 billion of 13 note series

By Wendy Van Sickle

Columbus, Ohio, March 5 – Verizon Communications Inc. began separate cash tender offers to repurchase up to a total of $3 billion of its notes from 13 series, according to a press release.

The series are divided into two sets, with nine series comprising the group 1 notes and four series comprising the group 2 notes. Verizon will repurchase up to $1.5 billion of notes from each group, using a waterfall method to accept notes on a priority basis.

Group 1 notes

The group 1 notes, listed in order of acceptance priority, include the following:

• $3,194,253,000 2.946% notes due 2022, with pricing to be set using the 2.625% Treasury note due Feb. 28, 2023 plus 55 basis points;

• $1,344,842,000 4.6% notes due 2021, with pricing to be set using the 2.25% Treasury note due Feb. 15, 2021 plus 50 bps;

• $1,628,716,000 3.5% notes due 2021, with pricing to be set using the 2.25% Treasury note due Feb. 15, 2021 plus 65 bps;

• $861,617,000 3.45% notes due 2021, with pricing to be set using the 2.25% Treasury note due Feb. 15, 2021 plus 50 bps;

• $1.85 billion 3.125% notes due 2022, with pricing to be set using the 2.625% Treasury note due Feb. 28, 2023 plus 55 bps;

• $1,226,930,000 3% notes due 2021, with pricing to be set using the 2.25% Treasury note due Feb. 15, 2021 plus 65 bps;

• $1,464,954,000 2.45% notes due 2022, with pricing to be set using the 2.625% Treasury note due Feb. 28, 2023 plus 70 bps;

• $873757,000 1.75% notes due 2021, with pricing to be set using the 2.25% Treasury note due Feb. 15, 2021 plus 65 bps; and

• $1.4 billion floating-rate notes due 2022 for a total consideration of $1,021 per $1,000 principal amount.

Group 2 notes

The group 2 notes, listed in order of acceptance priority, include the following:

• $5,499,999,000 4.672% notes due 2055, with pricing to be set using the 2.75% Treasury note due Nov. 15, 2047 plus 195 bps;

• $5 billion 4.522% notes due 2048, with pricing to be set using the 2.75% Treasury note due Nov. 15, 2047 plus 180 bps;

• $5.5 billion 5.012% notes due 2054, with pricing to be set using the 2.75% Treasury note due Nov. 15, 2047 plus 195 bps; and

• $4,072,197,000 5.012% notes due 2049, with pricing to be set using the 2.75% Treasury note due Nov. 15, 2047 plus 185 bps.

For each series, the total consideration will include an early tender premium of $50 per $1,000 of notes tendered by the early deadline, 5 p.m. ET on March 16.

Tenders may be withdrawn until that time.

The offers will expire at 11:59 p.m. ET on March 30.

Citigroup Global Markets Inc. (800-558-3745 or 212-723-6106), Goldman Sachs & Co. LLC (800-828-3182 or 212-577-1452) and J.P. Morgan Securities LLC (866-834-4666 or 212-834-4811) are the lead dealer managers for the offers.

Global Bondholders Services Corp. (866-470-3800 or 212-430-3774) is the information agent for the offers.

Verizon is a New York City-based telecommunications company.

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