Verizon announces accepted amounts and pricing terms for exchange offers
Verizon (NYSE, NASDAQ: VZ) announced the accepted amounts and pricing terms for its private exchange offers of ten series of notes maturing between 2025 and 2028.
The new notes due in 2035 will be issued under the terms set in the Offering Memorandum and amendments dated July 22, July 30, and August 5, 2024. Withdrawal rights expired on August 2, 2024, with the Extended Early Participation Date set as August 19, 2024, which is also the Expiration Date unless extended or terminated earlier.
All conditions for the exchange offers were met, and the Early Settlement Date is August 9, 2024. The final settlement date will be two business days after the Expiration Date. The new notes, featuring a 4.780% coupon and totaling $2.165 billion, will mature on February 15, 2035.
Eligibility for the exchange is restricted to qualified institutional buyers and non-US persons. The new notes will not be registered under the Securities Act of 1933 and are not available to US retail investors.
Verizon (NYSE, NASDAQ: VZ) ha annunciato gli importi accettati e i termini di pricing per le sue offerte di scambio private riguardanti dieci serie di note in scadenza tra il 2025 e il 2028.
Le nuove note con scadenza nel 2035 saranno emesse secondo i termini stabiliti nel Memorandum d’Offerta e nelle modifiche datate 22 luglio, 30 luglio e 5 agosto 2024. I diritti di revoca sono scaduti il 2 agosto 2024, con la Data di Partecipazione Anticipata Prolungata fissata al 19 agosto 2024, che è anche la Data di Scadenza, a meno di un'estensione o di una cessazione anticipata.
Tutte le condizioni per le offerte di scambio sono state soddisfatte, e la Data di Liquidazione Anticipata è il 9 agosto 2024. La data di liquidazione finale sarà due giorni lavorativi dopo la Data di Scadenza. Le nuove note, con un coupon del 4,780% e un totale di 2,165 miliardi di dollari, scadranno il 15 febbraio 2035.
La partecipazione all’offerta di scambio è riservata agli investitori istituzionali qualificati e alle persone non statunitensi. Le nuove note non saranno registrate ai sensi del Securities Act del 1933 e non sono disponibili per gli investitori al dettaglio statunitensi.
Verizon (NYSE, NASDAQ: VZ) anunció los importes aceptados y los términos de precios para sus ofertas de intercambio privado de diez series de notas que vencen entre 2025 y 2028.
Las nuevas notas que vencen en 2035 se emitirán bajo los términos establecidos en el Memorando de Oferta y en las enmiendas fechadas 22 de julio, 30 de julio y 5 de agosto de 2024. Los derechos de retiro expiraron el 2 de agosto de 2024, con la Fecha de Participación Temprana Extendida fijada para el 19 de agosto de 2024, que también es la Fecha de Expiración, a menos que se prorrogue o se termine antes.
Se cumplieron todas las condiciones para las ofertas de intercambio, y la Fecha de Liquidación Temprana es el 9 de agosto de 2024. La fecha de liquidación final será dos días hábiles después de la Fecha de Expiración. Las nuevas notas, con un cupón del 4.780% y un total de 2.165 millones de dólares, madurarán el 15 de febrero de 2035.
La elegibilidad para el intercambio está restringida a compradores institucionales calificados y personas no estadounidenses. Las nuevas notas no se registrarán bajo la Ley de Valores de 1933 y no están disponibles para los inversores de venta al por menor de EE.UU.
Verizon (NYSE, NASDAQ: VZ)는 2025년과 2028년 사이 만기되는 10개 시리즈의 채권에 대한 사모 교환 제안의 수락된 금액과 가격 조건을 발표했습니다.
2035년에 만기가 도래하는 새로운 채권은 2024년 7월 22일, 7월 30일, 8월 5일에 작성된 오퍼링 메모랜덤과 수정 사항에 따라 발행됩니다. 철회 권리는 2024년 8월 2일에 만료되었으며, 연장된 조기 참여 날짜는 2024년 8월 19일로 설정되어 있으며, 이는 연장되거나 조기에 종료되지 않는 한 만료일과 같습니다.
모든 교환 제안 조건이 충족되었으며, 조기 정산일은 2024년 8월 9일입니다. 최종 정산일은 만료일 이후 2영업일입니다. 새로운 채권은 4.780%의 쿠폰을 가지고 있으며, 총 21억 6천5백만 달러에 해당하며, 2035년 2월 15일에 만기가 됩니다.
교환에 대한 자격은 자격을 갖춘 기관 투자자와 비미국인으로 제한됩니다. 새로운 채권은 1933년 증권법에 따라 등록되지 않으며, 미국 소매 투자자에게는 제공되지 않습니다.
Verizon (NYSE, NASDAQ: VZ) a annoncé les montants acceptés et les conditions de prix pour ses offres d'échange privées de dix séries de billets arrivant à échéance entre 2025 et 2028.
Les nouveaux billets arrivant à échéance en 2035 seront émis selon les conditions établies dans le Mémo d'Offre et les modifications datées du 22 juillet, 30 juillet et 5 août 2024. Les droits de retrait ont expiré le 2 août 2024, avec la Date de Participation Anticipée Prolongée fixée au 19 août 2024, qui est également la Date d'Expiration, sauf prolongation ou résiliation anticipée.
Toutes les conditions pour les offres d'échange ont été remplies, et la Date de Règlement Anticipée est le 9 août 2024. La date de règlement finale sera deux jours ouvrables après la Date d'Expiration. Les nouveaux billets, dotés d'un coupon de 4,780 % et d'un montant total de 2,165 milliards de dollars, arriveront à échéance le 15 février 2035.
La participation à l'échange est réservée aux acheteurs institutionnels qualifiés et aux personnes non américaines. Les nouveaux billets ne seront pas enregistrés en vertu de la loi sur les valeurs mobilières de 1933 et ne sont pas disponibles pour les investisseurs de détail américains.
Verizon (NYSE, NASDAQ: VZ) gab die akzeptierten Beträge und Preisbedingungen für seine privaten Tauschangebote von zehn Anleihen bekannt, die zwischen 2025 und 2028 fällig werden.
Die neuen Anleihen, die im Jahr 2035 fällig werden, werden unter den Bedingungen ausgegeben, die im Angebotsschreiben und in den Änderungen vom 22. Juli, 30. Juli und 5. August 2024 festgelegt sind. Die Rücktrittsrechte liefen am 2. August 2024 ab, mit dem verlängerten frühen Teilnahmezeitpunkt, der auf den 19. August 2024 festgelegt wurde, der auch das Fälligkeitsdatum ist, sofern es nicht verlängert oder vorzeitig beendet wird.
Alle Bedingungen für die Tauschangebote wurden erfüllt, und das frühe Abrechnungsdatum ist der 9. August 2024. Das endgültige Abrechnungsdatum wird zwei Geschäftstage nach dem Fälligkeitsdatum liegen. Die neuen Anleihen, die mit einem Coupon von 4,780 % und einem Gesamtbetrag von 2,165 Milliarden US-Dollar ausgestattet sind, laufen am 15. Februar 2035 aus.
Die Berechtigung für den Austausch ist auf qualifizierte institutionelle Käufer und nicht-US-Personen beschränkt. Die neuen Anleihen werden nicht gemäß dem Securities Act von 1933 registriert und sind für US-Einzelhandelsinvestoren nicht verfügbar.
- Verizon met all conditions for the exchange offers.
- The new notes feature a competitive 4.780% coupon.
- Early Settlement Date is set for August 9, 2024.
- Total of $2.165 billion in new notes to be issued.
- The new notes will not be registered under the Securities Act of 1933, limiting their marketability.
Insights
Verizon's exchange offer is a strategic debt management move. By offering to exchange shorter-term notes (maturing 2025-2028) for new notes due in 2035, Verizon is effectively extending its debt maturity profile. This can help reduce near-term refinancing risks and potentially lock in current interest rates for a longer period.
The exchange offer has seen significant uptake, with over
However, investors should note that while this exchange extends maturities, it doesn't reduce Verizon's overall debt load. The company's ability to manage its substantial debt will remain a key factor to watch in assessing its financial health.
This exchange offer provides insight into both Verizon's strategy and broader market conditions. The strong participation in the offer suggests investors are willing to extend maturities, possibly indicating concerns about future interest rate volatility or economic uncertainty.
The pricing of the new notes at
For the telecom sector, this transaction underscores the ongoing importance of managing large debt loads and the challenges of funding significant capital expenditures, particularly as 5G rollouts continue. Investors should monitor how other telecom companies manage their debt profiles in response to current market conditions.
NEW YORK, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (“Verizon”) (NYSE, NASDAQ: VZ) today announced the accepted amounts as of the Original Early Participation Date (as defined in the Early Results Press Release (as defined below)) and pricing terms of its previously announced private offers to exchange the 10 outstanding series of notes listed in the first table below and maturing from 2025 through 2028 (collectively, the “Old Notes”), in each case, for newly issued notes of Verizon due 2035 (the “New Notes”) (the “Exchange Offers”), on the terms and subject to the conditions set forth in an offering memorandum dated July 22, 2024 (as amended by Verizon’s press release dated July 30, 2024, Verizon’s press release dated today, August 5, 2024, relating to the early results and extension of the early participation date of the Exchange Offers (the “Early Results Press Release”) and this press release, the “Offering Memorandum”). The Offering Memorandum and the accompanying eligibility letter for the Exchange Offers constitute the “Exchange Offer Documents”.
Withdrawal rights for each Exchange Offer expired at 5:00 p.m. (New York City time) on August 2, 2024. The Extended Early Participation Date (as defined in the Early Results Press Release) is 5:00 p.m. (New York City time) on August 19, 2024, at which time the Exchange Offers will also expire (the “Expiration Date”), unless the Expiration Date is extended or earlier terminated by Verizon.
As previously announced, all conditions applicable to the Exchange Offers as of the Original Early Participation Date have been deemed satisfied or waived by Verizon and the Minimum Issue Requirement (as defined in Verizon’s press release announcing the Exchange Offers, dated July 22, 2024 (the “Launch Press Release”)) for each of the Exchange Offers was met as of the Original Early Participation Date.
Verizon will settle all Old Notes validly tendered at or prior to the Original Early Participation Date and accepted for exchange on August 9, 2024 (the “Early Settlement Date”). Because the aggregate principal amount of New Notes to be issued in exchange for the Old Notes validly tendered at or prior to the Original Early Participation Date and accepted for exchange will not exceed the New Notes Cap (as defined in the Early Results Press Release), Verizon will, until the Expiration Date, continue to accept for purchase all Old Notes validly tendered after the Original Early Participation Date, subject to all conditions having been satisfied or waived by Verizon with respect to the Exchange Offers. The Final Settlement Date (as defined in the Launch Press Release) is expected to be the second business day after the Expiration Date, unless extended with respect to any Exchange Offer.
Exchange Offers
The table below indicates, among other things, the aggregate principal amount of Old Notes validly tendered at or prior to the Original Early Participation Date in each Exchange Offer and accepted for exchange, the Exchange Offer Yield (as defined below) for each series of Fixed Rate Notes (as defined below) and the Total Exchange Price (as defined below) for each series of Fixed Rate Notes, each as calculated at 10:00 a.m. (New York City time) today, August 5, 2024 (the “Price Determination Date”) in accordance with the terms set forth in the Offering Memorandum. No series of Old Notes validly tendered at or prior the Original Early Participation Date and accepted in the Exchange Offers was subject to proration.
| Acceptance Priority Level | CUSIP Number(s) | Title of Security | Principal Amount Outstanding | Principal Amount Accepted under the Exchange Offers | Reference U.S. Treasury Security | Yield of Reference U.S. Treasury Security | Fixed Spread (basis points) | Exchange Offer Yield(1) | Fixed Rate Note Total Exchange Price(2) | Floating Rate Note Total Exchange Price(3) | |||
| 1 | 92343VEN0/ 92343VEB6/ U9221AAY4 | $ | 1,339,761,000 | $ | 51,770,000 | +0 | N/A | ||||||
| 2 | 92343VEP5 | Floating Rate notes due 2025 | $ | 889,448,000 | $ | 12,414,000 | N/A | N/A | N/A | N/A | N/A | $ | 1,008.30 |
| 3 | 92343VFS8 | $ | 1,404,030,000 | $ | 169,648,000 | +10 | N/A | ||||||
| 4 | 92343VGG3 | $ | 1,916,467,000 | $ | 262,230,000 | +20 | N/A | ||||||
| 5 | 92343VGE8 | Floating Rate notes due 2026 | $ | 526,229,000 | $ | 32,169,000 | N/A | N/A | N/A | N/A | N/A | $ | 1,013.20 |
| 6 | 92343VDD3 | $ | 1,869,415,000 | $ | 90,490,000 | +30 | N/A | ||||||
| 7 | 92343VDY7 | $ | 3,250,000,000 | $ | 306,469,000 | +45 | N/A | ||||||
| 8 | 92343VFF6 | $ | 750,000,000 | $ | 152,659,000 | +45 | N/A | ||||||
| 9 | 92343VER1/ 92343VEQ3/ U9221ABK3 | $ | 4,199,647,000 | $ | 494,810,000 | +55 | N/A | ||||||
| 10 | 92343VGH1 | $ | 2,829,602,000 | $ | 656,658,000 | +55 | N/A | ||||||
_______________________
- The “Exchange Offer Yield” for each series of Old Notes other than the Floating Rate Notes (as defined below) (all such Old Notes, the “Fixed Rate Notes”) is equal to the sum of (i) the yield, as calculated by the lead dealer managers, that equates to the bid-side price of the applicable Reference U.S. Treasury Security specified in the table above for such series of Fixed Rate Notes on the Price Determination Date quoted on the Bloomberg Reference Page specified in the Launch Press Release, plus (ii) the applicable Fixed Spread specified in the table above (the “Fixed Spread”) for such series of Fixed Rate Notes.
- The “Total Exchange Price” for each series of Fixed Rate Notes payable in principal amount of New Notes per each
$1,000 principal amount of such series of Fixed Rate Notes validly tendered for exchange at or prior to the Extended Early Participation Date and accepted for purchase, and is based on the Fixed Spread for the applicable series of Fixed Rate Notes, plus the yield of the specified Reference U.S. Treasury Security for that series (as quoted on the applicable Bloomberg Reference Page specified in the Launch Press Release) as of the Price Determination Date.
- The Total Exchange Price payable in principal amount of New Notes per each
$1,000 principal amount of floating rate notes due 2025 and floating rate notes due 2026 (the “Floating Rate Notes”) validly tendered for exchange at or prior to the Extended Early Participation Date and accepted for purchase.
The following table sets forth the terms of the New Notes:
| Issuer | Title of Security | New Notes Coupon(1) | Principal Amount Expected to be Issued on the Early Settlement Date |
| Verizon Communications Inc. | Notes due 2035 |
_______________________
(1) Equal to the sum of (a) the yield of the
Eligible Holders who validly tender their Old Notes at or prior to the Extended Early Participation Date and whose Old Notes are accepted by Verizon will receive the applicable Total Exchange Price, which includes the Early Participation Payment (as defined in the Offering Memorandum).
On each relevant settlement date, Eligible Holders whose Old Notes are accepted by Verizon will receive the applicable Total Exchange Price and the Accrued Coupon Payment (as defined in the Launch Press Release). The Accrued Coupon Payment for any Old Notes exchanged for New Notes at the Final Settlement Date, if any, will be reduced to offset any interest accrued on such New Notes from the Early Settlement Date, as further described in the Offering Memorandum.
Registration of the New Notes
When issued, the New Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any other laws. Therefore, the New Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws. Verizon will enter into a registration rights agreement with respect to the New Notes on the Early Settlement Date.
Only holders who duly complete and return an eligibility letter certifying that they are either (1) “qualified institutional buyers” as defined in Rule 144A under the Securities Act or (2) non-”U.S. persons” (as defined in Rule 902 under the Securities Act) located outside of the United States and who are not acting for the account or benefit of a U.S. Person and are “Non-U.S. qualified offerees” (as defined in the eligibility letter) are authorized to receive the Offering Memorandum and to participate in the Exchange Offers (each such holder, an “Eligible Holder”).
Global Bondholder Services Corporation is acting as the Information Agent and the Exchange Agent for the Exchange Offers. Questions or requests for assistance related to the Exchange Offers may be directed to Global Bondholder Services Corporation at (855) 654-2015 (toll free) or (212) 430-3774 (collect). You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Exchange Offers.
This announcement is for informational purposes only. This announcement is not an offer to purchase or a solicitation of an offer to purchase any Old Notes. The Exchange Offers are being made solely pursuant to the Offering Memorandum and related documents. The Exchange Offers are not being made to holders of Old Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Exchange Offers to be made by a licensed broker or dealer, the Exchange Offers will be deemed to be made on behalf of Verizon by the dealer managers or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This communication has not been approved by an authorized person for the purposes of Section 21 of the Financial Services and Markets Act 2000, as amended (the “FSMA”). Accordingly, this communication is not being directed at persons within the United Kingdom save in circumstances where section 21(1) of the FSMA does not apply.
In particular, this communication is only addressed to and directed at: (A) in any Member State of the European Economic Area, qualified investors within the meaning of the Prospectus Regulation, (B) in the United Kingdom, qualified investors within the meaning of the UK Prospectus Regulation and (C) (i) persons that are outside the United Kingdom or (ii) persons in the United Kingdom falling within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotion Order”)) or within Article 43 of the Financial Promotion Order, or to high net worth companies, and other persons to whom financial promotions may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Financial Promotion Order, or to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (such persons together being “relevant persons”). The New Notes are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such New Notes will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on either the Offering Memorandum or any of its contents. For purposes of the foregoing, the “Prospectus Regulation” means Regulation (EU) 2017/1129 and the “UK Prospectus Regulation” means Regulation (EU) 2017/1129 as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018.
Cautionary statement regarding forward-looking statements
In this communication Verizon has made forward-looking statements. These forward-looking statements are not historical facts, but only predictions and generally can be identified by use of statements that include phrases such as “will,” “may,” “should,” “continue,” “anticipate,” “assume,” “believe,” “expect,” “plan,” “appear,” “project,” “estimate,” “hope,” “intend,” “target,” “forecast,” or other words or phrases of similar import. Similarly, statements that describe our objectives, plans or goals also are forward-looking statements. These forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated, including those discussed under the heading “Risk Factors” contained in the Offering Memorandum and under similar headings in other documents that are incorporated by reference into the Offering Memorandum. Eligible Holders are urged to consider these risks and uncertainties carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release are made only as of the date of this press release, and Verizon undertakes no obligation to update publicly these forward-looking statements to reflect new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events might or might not occur. Verizon cannot assure you that projected results or events will be achieved.
Media contact:
Eric Wilkens
201-572-9317
eric.wilkens@verizon.com
FAQ
What are the pricing terms for Verizon's exchange offers?
When is the Early Settlement Date for Verizon's exchange offers?
What is the coupon rate for Verizon’s new notes due 2035?
What is the principal amount of new notes Verizon will issue?
When is the expiration date for Verizon's exchange offers?
Who is eligible to participate in Verizon's exchange offers?
Are Verizon's new notes registered under the Securities Act of 1933?
