Verizon announces early results for tender offers for six series of debt securities and extension of early participation date

Rhea-AI Summary

Verizon (VZ) announced early results for its tender offers to purchase six series of debt securities. As of November 21, 2024, significant portions of various notes were tendered: 38.13% of 3.376% notes due 2025, 42.68% of Floating Rate notes due 2025, 43.98% of 0.850% notes due 2025, 48.63% of 1.450% notes due 2026, 51.26% of Floating Rate notes due 2026, and 43.44% of 2.625% notes due 2026.

The company extended the early participation date to December 9, 2024, which coincides with the offers' expiration date. Settlement for securities tendered by the original early participation date is scheduled for November 26, 2024.

Positive

• Strong participation rates across all six debt securities, with tender rates ranging from 38.13% to 51.26%
• Early participation payment of $50 per $1,000 principal amount offered to participants

Negative

• None.

Insights

Financial Analyst

Verizon's debt tender offer for six series of notes represents a significant liability management initiative. The company has received substantial participation, with tender rates ranging from 38.13% to 51.26% across different note series. This strong response indicates investors' willingness to cash out their holdings, likely due to the attractive pricing offered.

The extension of the early participation date to December 9 suggests Verizon is aiming to maximize participation while maintaining the early tender premium of $50 per $1,000 principal amount. This debt restructuring could help optimize Verizon's maturity profile and potentially reduce interest expenses, particularly important given the current high-rate environment.

NEW YORK, Nov. 22, 2024 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (“Verizon”) (NYSE, NASDAQ: VZ) today announced, in connection with Verizon’s previously announced Offers (as defined below) to purchase its outstanding Securities (as defined below) on the terms and subject to the conditions set forth in the offer to purchase dated November 7, 2024 (the “Offer to Purchase”): (1) the early participation results for the Offers as of 5:00 p.m. (Eastern time) on November 21, 2024 (the “Original Early Participation Date”) and (2) that, with respect to the Offers, the date and time by which Holders (as defined below) must validly tender their Securities to receive the applicable Total Consideration (as defined in the Offer to Purchase) and Accrued Coupon Payment (as defined below), has been extended to 5:00 p.m. (Eastern time) on December 9, 2024 (such date and time with respect to an Offer, the “Extended Early Participation Date”). Accordingly, the Extended Early Participation Date will occur at the same time the Offers are scheduled to expire. Except as described in this press release, the terms and conditions of the Offers remain unchanged.

The deadline to validly withdraw tenders of Securities was not modified by Verizon and the withdrawal rights for each Offer expired at 5:00 p.m. (Eastern time) on November 21, 2024. The Offers will expire at 5:00 p.m. (Eastern time) on December 9, 2024 (the “Expiration Date”), unless extended or earlier terminated by Verizon.

The table below sets forth the early participation results, as of the Original Early Participation Date, for Verizon’s previously announced six separate offers to purchase for cash, with respect to the outstanding series of debt securities (each a “Security” and collectively, the “Securities”) listed in the table below. Verizon refers to each offer to purchase a Security for cash as an “Offer” and all the offers to purchase the Securities, collectively as the “Offers.”

Verizon was advised by Global Bondholder Services Corporation, as the tender agent, that as of the Original Early Participation Date, the aggregate principal amounts of the Securities specified in the table below were validly tendered and not validly withdrawn:

Acceptance Priority Level		CUSIP Number(s)		Title of Security		Principal Amount Outstanding				Principal Amount Tendered as of the Original Early Participation Date		Percentage of Amount Outstanding Tendered as of the Original Early Participation Date
1		92343VEN0 / 92343VEB6 / U9221AAY4		3.376% notes due 2025			$1,287,477,000			$490,854,000		38.13%
2		92343VEP5		Floating Rate notes due 2025			$873,918,000			$373,004,000		42.68%
3		92343VFS8		0.850% notes due 2025			$1,232,569,000			$542,142,000		43.98%
4		92343VGG3		1.450% notes due 2026			$1,653,140,000			$803,974,000		48.63%
5		92343VGE8		Floating Rate notes due 2026			$493,127,000			$252,796,000		51.26%
6		92343VDD3		2.625% notes due 2026			$1,776,821,000			$771,770,000		43.44%

Verizon’s obligation to accept Securities tendered in the Offers is subject to the terms and conditions described in the Offer to Purchase, including, among other things, the Acceptance Priority Procedures. The Offers are not conditioned on any minimum amount of Securities being tendered, and none of the Offers is conditioned on the consummation of any of the other Offers.

All conditions applicable to the Offers as of the Original Early Participation Date were deemed satisfied by Verizon, or timely waived by Verizon. Accordingly, Verizon will settle all Securities validly tendered at or prior to the Original Early Participation Date and accepted for purchase, on November 26, 2024 (the “Early Settlement Date”), subject to the terms of the Offers.

Promptly after 10:00 a.m. (Eastern time) today, November 22, 2024, Verizon will issue a press release specifying, among other things, (i) the aggregate principal amount of Securities accepted in each Offer, (ii) the offer yield for each series of fixed-rate Securities, which is equal to the sum of (a) the applicable reference yield, which shall be based on the bid-side price of the applicable Reference U.S. Treasury Security (specified in the Offer to Purchase for such series of Securities) as quoted on the applicable Bloomberg reference page (specified in the Offer to Purchase for such series of Securities) as of 10:00 a.m. Eastern time, today, November 22, 2024, plus (b) the fixed spread for the applicable series of fixed-rate Securities and (iii) the Total Consideration for each series of fixed-rate Securities. The Total Consideration for each series of Securities includes an early participation payment of $50 per $1,000 principal amount of Securities.

Because the aggregate Total Consideration of the Securities validly tendered at or prior to the Original Early Participation Date and accepted for purchase is expected to not exceed the Waterfall Cap (as defined in the Offer to Purchase), Verizon will, until the Expiration Date, continue to accept for purchase all Securities validly tendered after the Original Early Participation Date, subject to all conditions having been satisfied or waived by Verizon with respect to the Offers. The Final Settlement Date (as defined in the Offer to Purchase) is expected to be the second business day after the applicable Expiration Date, unless extended with respect to any Offer.

On each relevant settlement date, holders of Securities (each, a “Holder” and collectively, “Holders”) that are validly tendered and accepted for purchase by Verizon will receive the applicable Total Consideration, in cash, and an additional cash payment equal to the accrued and unpaid interest on such Securities to, but not including, the relevant settlement date (the “Accrued Coupon Payment”).  

Verizon has retained BofA Securities, Inc., Santander US Capital Markets LLC, SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC to act as lead dealer managers for the Offers and Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Academy Securities, Inc. and R. Seelaus & Co., LLC to act as co-dealer managers for the Offers. Questions regarding terms and conditions of the Offers should be directed to BofA Securities, Inc. at (980) 387-3907 (Collect) or (888) 292-0070 (Toll-Free), Santander US Capital Markets LLC at (212) 350-0660 (Collect) or (855) 404-3636 (Toll Free), SMBC Nikko Securities America, Inc. at (212) 224-5163 (Collect) or (888) 284-9760 (Toll Free), or TD Securities (USA) LLC at (212) 827-2842 (Collect) or (866) 584-2096 (Toll-Free).

Global Bondholder Services Corporation is acting as the tender agent for the Offers. Questions or requests for assistance related to the Offers or for additional copies of the Offer to Purchase 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 Offers.

This announcement is for informational purposes only. This announcement is not an offer to purchase or a solicitation of an offer to sell any Securities. The Offers are being made solely pursuant to the Offer to Purchase. The Offers are not being made to Holders 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 Offers to be made by a licensed broker or dealer, the 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 and any other documents or materials relating to the Offers have 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 announcement is not being distributed to, and must not be passed on to, persons within the United Kingdom save in circumstances where section 21(1) of the FSMA does not apply. Accordingly, this communication is only addressed to and directed at (i) persons who are outside the United Kingdom, or (ii) persons 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 (iii) within Article 43 of the Financial Promotion Order, or (iv) high net worth companies and other persons to whom it may lawfully be communicated falling within Article 49(2)(a) to (d) of the Financial Promotion Order (such persons together being “relevant persons”). Any person who is not a relevant person should not act or rely on any document relating to the Offers or any of their contents.

This communication and any other documents or materials relating to the Offers are only addressed to and directed at persons in member states of the European Economic Area (the “EEA”), who are “Qualified Investors” within the meaning of Article 2(1)(e) of Regulation (EU) 2017/1129. The Offers are only available to Qualified Investors. None of the information in the Offer to Purchase and any other documents and materials relating to the Offers should be acted upon or relied upon in any member state of the EEA by persons who are not Qualified Investors.

Each Holder participating in the Offers will give certain representations in respect of the jurisdictions referred to above and generally as set out herein. Any tender of Securities for purchase pursuant to the Offers from a Holder that is unable to make these representations will not be accepted. Each of Verizon, the dealer managers and the tender agent reserves the right, in its absolute discretion, to investigate, in relation to any tender of Securities for purchase pursuant to the Offers, whether any such representation given by a Holder is correct and, if such investigation is undertaken and as a result Verizon determines (for any reason) that such representation is not correct, such tender shall not be accepted.

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,” “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 that could cause actual results to differ materially from those currently anticipated, including those discussed in the Offer to Purchase under the heading “Risk Factors” and under similar headings in other documents that are incorporated by reference in the Offer to Purchase. 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

When will Verizon (VZ) settle the securities tendered in the debt tender offer?

Verizon will settle securities validly tendered by the original early participation date on November 26, 2024.

What is the new early participation deadline for Verizon's (VZ) debt tender offers?

The early participation deadline has been extended to December 9, 2024, at 5:00 p.m. Eastern time, which coincides with the offers' expiration date.

What percentage of Verizon's (VZ) Floating Rate notes due 2026 were tendered?

51.26% of the Floating Rate notes due 2026 were tendered, representing the highest participation rate among the six series of debt securities.