Verizon gives final results of tender offers for 11 series of notes

By Sarah Lizee

Olympia, Wash., Nov. 1 – Verizon Communications Inc. announced the final results of its separate cash tender offers to repurchase a capped amount of notes from 11 series, according to a press release on Friday.

The payment cap was previously set at $4.6 billion, but Verizon waived the maximum total consideration condition, and all notes validly tendered at or prior to the expiration date have been accepted for purchase.

As of the expiration time of 5 p.m. ET on Oct. 31, the following amounts had been validly tendered, with the considerations for each $1,000 principal amount of the notes listed in order of acceptance priority:

• $1,079,508,000 of the $3,172,131,000 4.672% notes due 2055, for a total consideration of $1,238.53 set using the applicable Treasury plus 130 basis points;

• $356,454,000 of the $1,574,144,000 5.012% notes due 2054, for a total consideration of $1,302.29 set using the applicable Treasury plus 131 bps;

• $1,004,231,000 of the $3,535,114,000 5.012% notes due 2049, for a total consideration of $1,289.12 set using the applicable Treasury plus 125 bps;

• $210,802,000 of the $1,430,580,000 5.5% notes due 2047, for a total consideration of $1,360.68 set using the applicable Treasury plus 126 bps;

• $425,951,000 of the $4,317,480,000 4.862% notes due 2046, for a total consideration of $1,251.23 set using the applicable Treasury plus 123 bps;

• $389,542,000 of the $4,528,159,000 4.522% notes due 2048, for a total consideration of $1,204.83 set using the applicable Treasury plus 121 bps;

• $67.39 million of the $1,018,898,000 6.55% notes due 2043, for a total consideration of $1,502.95 set using the applicable Treasury plus 125 bps;

• $135,245,000 of the $1,274,054,000 4.125% notes due 2046, for a total consideration of $1,130.16 set using the applicable Treasury plus 119 bps;

• $32,012,000 of the $710.67 million 4.75% notes due 2041, for a total consideration of $1,200.58 set using the applicable Treasury plus 125 bps;

• $85,631,000 of the $1,006,378,000 3.85% notes due 2042, for a total consideration of $1,071.65 set using the applicable Treasury plus 120 bps; and

• $36,575,000 of the $1,582,870,000 4.812% notes due 2039, for a total consideration of $1,205.08 set using the applicable Treasury plus 117 bps.

In each case, the applicable Treasury is the 2.875% Treasury note due May 15, 2049.

Pricing was set at 11 a.m. ET on Oct. 31.

The offers were announced on Oct. 24.

Interest accrued to the settlement date will also be paid.

Settlement is expected on Nov. 5.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2476), J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) and Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) are the lead dealer managers for the offers.

BofA Securities, Inc., Loop Capital Markets LLC, Wells Fargo Securities, LLC, Academy Securities Inc., R. Seelaus & Co., LLC and Williams Capital Group, LP are co-dealer managers.

Global Bondholder Services Corp. (866 470-4300 or 212 430-3774) is the tender and information agent for the offers.

Verizon is a New York City-based telecommunications company.

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