Verizon Communications Inc. on June 11 announced the commencement of two related transactions to repurchase 13 series of its outstanding notes.
The first transaction consists of 13 separate private offers to exchange any and all of the outstanding series of notes in exchange for newly issued debt securities of Verizon. The exchange offers will each expire at 5 p.m. ET on June 15, unless extended or earlier terminated. The second transaction consists of 13 separate offers to purchase for cash any and all of each series of old notes.
Old notes tendered for exchange may be validly withdrawn at any time before 5 p.m. ET on June 15, unless extended or earlier terminated, but not after unless extended by Verizon. The exchange offer settlement date will be immediately following the offer expiration date, which is expected to be June 21.
The new notes will mature Sept. 21, 2028, and will bear interest at a rate per annum equal to the sum of the yield of the 2.875% U.S. Treasury Security due May 15, 2028, plus 143 basis points. Further, the maximum principal amount of new notes that Verizon will issue in all the exchange offers will not exceed $6.2 billion, unless waived by Verizon.
The cash offers will each expire at 5 p.m. ET on June 15, unless extended or earlier terminated. Old notes tendered for purchase may be validly withdrawn at any time at or before 5 p.m. ET on June 15, unless extended or earlier terminated. The cash offer settlement date will be immediately following the cash offer expiration date, which is expected to be June 21.
The maximum aggregate amount of cash that Verizon will use to purchase all validly tendered old notes in the cash offers is $250.0 million, unless waived by Verizon.
Global Bondholder Services Corp. will act as the information agent and the tender agent for the cash offers.
