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Telecommunications company Verizon (NYSE:VZ) (NEOE:VZ:CA) announced on Thursday the commencement of two transactions – private exchange offer and cash offer – to repurchase up to $2.8B of certain outstanding notes.
The exchange offer and the cash offer are for the following securities –
- 1.450% notes due 2026 (Fixed Spread +0 basis points)
- Floating rate notes due 2026 (Fixed Spread N/A)
- 4.125% notes due 2027 (Fixed Spread +15 basis points)
- 3.000% notes due 2027 (Fixed Spread +15 basis points)
- 4.329% notes due 2028 (Fixed Spread +20 basis points)
- 2.100% notes due 2028 (Fixed Spread +15 basis points)
- 4.016% notes due 2029 (Fixed Spread +30 basis points)
- 3.150% notes due 2030 (Fixed Spread +35 basis points)
- 1.680% notes due 2030 (Fixed Spread +55 basis points)
- 7.750% notes due 2030 (Fixed Spread +60 basis points)
For the exchange offer, the outstanding notes are set to be exchanged for newly issued debt securities.
The exchange price payable per each $1,000 principal amount of the notes, except the floating rate notes, will be determined based on their respective fixed spread and the yield of their reference U.S Treasury security.
The maximum principal amount of the new notes to be issued is not expected to exceed $2.5B.
For the second transaction, the applicable consideration for each $1,000 principal amount is set to be paid in cash. The total cash consideration payable is not expected to exceed $300M.
The exchange and cash offers are expected to expire at 5:00 PM ET on June 18, with the settlement dates expected to be June 25.