News Column

Verizon Announces Pricing Terms of Exchange Offer

June 25, 2014



By a News Reporter-Staff News Editor at Telecommunications Weekly -- Verizon Communications Inc. ("Verizon") (NYSE, NASDAQ: VZ; LSE: VZC) announced the pricing terms of its previously announced private offer to exchange (the "Exchange Offer") up to all of Cellco Partnership's and Verizon Wireless Capital LLC's (together, "Verizon Wireless") 600,000,000 outstanding aggregate principal amount of 8.875% Notes due December 18, 2018 (the "Existing Notes") for Verizon's new sterling-denominated notes due 2024 (the "New Notes") and an amount of cash.

The interest rate on the New Notes will be 4.073% per annum, determined in accordance with the procedures set forth in the confidential exchange offer memorandum, dated May 29, 2014, related to the Exchange Offer (the "Exchange Offer Memorandum") by reference to the sum (expressed on an annualized basis) of (i) the yield of the 2.25% United Kingdom Treasury Bond due September 7, 2023, as calculated by the lead dealer manager for the Exchange Offer in accordance with standard market practice, as of 12:00 noon (London time) on June 11, 2014, appearing on the U.K. DMO 2 Page as displayed on the Bloomberg Pricing Monitor, which was 2.732%, and (ii) the New Notes spread, previously determined at 11:00 a.m. (London time) on June 2, 2014, which was 1.30%.

The total exchange price to be received in the Exchange Offer for each 1,000 principal amount of Existing Notes validly tendered, and not validly withdrawn, at or prior to the early participation date (11:59 p.m. (New York time) on June 11, 2014, unless extended by Verizon), and accepted for exchange pursuant to the terms and conditions of the Exchange Offer, is set forth in the table below. The total exchange price includes the early exchange premium of 50.00 principal amount of New Notes in respect of each 1,000 principal amount of Existing Notes validly tendered, and not validly withdrawn, at or prior to the early participation date. The total exchange price for the Exchange Offer has been determined in accordance with the procedures set forth in the Exchange Offer Memorandum. Eligible Holders (as defined below) of Existing Notes that validly tender Existing Notes after the early participation date, but at or prior to the expiration date (11:59 p.m. (New York time) on June 25, 2014, unless extended by Verizon), and whose Existing Notes are accepted in the Exchange Offer, will receive the exchange price, which is the total exchange price minus the early exchange premium.

The table below shows, among other things, the total exchange price and exchange price per 1,000 principal amount of Existing Notes accepted in the Exchange Offer.

Keywords for this news article include: Verizon Communications Inc.

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Source: Telecommunications Weekly


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