Verizon Communications Inc. plans to sell $45 billion to $49 billion of bonds in an eight-part offering as soon as tomorrow that would be the largest on record, according to a person with knowledge of the transaction.
The sale, intended to finance a $130 billion purchase of Vodafone Group Plc's 45 percent stake in Verizon Wireless, would be more than twice the size of Apple's Inc.'s unprecedented $17 billion issue in April, according to data compiled by Bloomberg. Verizon is planning to sell fixed-rate debt with maturities ranging from three to 30 years as well as two portions of floating-rate securities, said another person, who asked not to be identified because terms aren't set.
"It's very difficult to find an issuer with this type of cachet," said Thomas Chow, a Philadelphia-based money manager at Delaware Investments who helps oversee about $130 billion in fixed-income assets. "It's a market leader, has great assets, operating leverage, and generates a large amount of free cash flow that allows for deleveraging," he said. "As an investor, you've checked every box that you'd want to have checked."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
