Verizon closes record $ 49 billion bond deal
Verizon Communications on Wednesday priced a massive $ 49 billion bond offer, the largest corporate debt offer ever.
The telecommunications giant, which will use the proceeds to fund a $ 130 billion acquisition of its wireless unit, has sold a mix of three-year, five-year, seven-year, 10-year, 20-year and 30-year maturities.
Verizon’s 30-year bond was valued at a yield of 6.559% and a 10-year bond was valued at a yield of 5.192%. The telecoms giant has sold $ 15 billion over 30 years and $ 11 billion over 10 years.
Prices arrived as expected and bond spreads narrowed, with the 10-year tighter by around 35 basis points, said Joel Levington of Brookfield Investment Management.
“No surprise in market acceptance given the magnitude of bond prices,” he added. “The current bondholders are the ones suffering from the new spreads and downgrades.”
(Read more: Why the $ 130 billion Verizon-Vodafone deal makes sense)