Verizon to redeem debt securities on June 15, 2020

Rhea-AI Summary

Verizon Communications (VZ) announced the redemption of two sets of notes, scheduled for June 15, 2020. The 2.375% Notes due February 17, 2022, totaling €935,347,000, and the 0.500% Notes due June 2, 2022, with €453,963,000 outstanding, will be redeemed at the greater of their principal amounts or the present values of remaining payments. This strategic financial move allows Verizon to optimize its debt structure as it continues to navigate a dynamic market.

Positive

• Redemption of €935,347,000 in 2.375% Notes allows for potential interest savings.
• Reduction of €453,963,000 in 0.500% Notes enhances cash position.

Negative

• None.

NEW YORK, May 15, 2020 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (“Verizon”) (NYSE, NASDAQ: VZ) today announced that it will redeem the following notes on June 15, 2020 (the “Redemption Date”):

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I.D. Number	Title of Security	NYSE Trading Symbol	Principal Amount Outstanding
1%; width:1%; min-width:1%;">	29%; width:29%; min-width:29%;">CUSIP: 92343V BV5 ISIN: XS1030900168 Common Code: 103090016	1%; width:1%; min-width:1%;">	29%; width:29%; min-width:29%;">2.375% Notes due February 17, 2022 (the “2.375% Notes”)	1%; width:1%; min-width:1%;">	15%; width:15%; min-width:15%;">VZ22A	1%; width:1%; min-width:1%;">	23%; width:23%; min-width:23%;">€935,347,000
	CUSIP: 92343V DH4 ISIN: XS1405767275 Common Code: 140576727		0.500% Notes due June 2, 2022 (the “0.500% Notes”)		VZ22B		€453,963,000

The redemption price for the 2.375% Notes will be equal to the greater of (i) 100% of the principal amount of the 2.375% Notes being redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2.375% Notes (exclusive of interest accrued to the Redemption Date), as the case may be, discounted to the Redemption Date on an annual basis (ACTUAL/ACTUAL (ICMA)) at the Comparable Government Bond Rate (as defined in the 2.375% Notes) plus 20 basis points (the “2.375% Redemption Price”), plus accrued and unpaid interest on the principal amount being redeemed to, but excluding, the Redemption Date. The 2.375% Notes Redemption Price will be calculated in accordance with the terms of the 2.375% Notes on the third Business Day (as defined in the 2.375% Notes) preceding the Redemption Date. 

The redemption price for the 0.500% Notes will be equal to the greater of (i) 100% of the principal amount of the 0.500% Notes being redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 0.500% Notes (exclusive of interest accrued to the Redemption Date), as the case may be, discounted to the Redemption Date on an annual basis (ACTUAL/ACTUAL (ICMA)) at the Comparable Government Bond Rate (as defined in the 0.500% Notes) plus 15 basis points (the “0.500% Redemption Price”), plus accrued and unpaid interest on the principal amount being redeemed to, but excluding, the Redemption Date. The 0.500% Notes Redemption Price will be calculated in accordance with the terms of the 0.500% Notes on the third Business Day (as defined in the 0.500% Notes) preceding the Redemption Date. Annual interest on the 0.500% Notes will be paid on June 2, 2020 to each holder of record on the close of business on May 19, 2020.

Questions relating to the notice of redemption and related materials should be directed to the paying agent: U.S. Bank National Association, c/o Elavon Financial Services DAC, UK Branch, 125 Old Broad Street, Fifth Floor, London, EC2N 1AR, United Kingdom, or via telephone at 1-800-934-6802.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is celebrating its 20th year as one of the world’s leading providers of technology, communications, information and entertainment products and services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $131.9 billion in 2019.  The company offers voice, data and video services and solutions on its award winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.

Cautionary Statement Regarding Forward-Looking Statements

In this communication we have 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,” “intend,” 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. Factors that could materially affect these forward-looking statements can be found in our periodic reports filed with the SEC. Eligible holders are urged to consider these factors 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 we undertake 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. We cannot assure you that projected results or events will be achieved.

VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at www.verizon.com/about/news/. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Media contact:
Eric Wilkens
Eric.wilkens@verizon.com
201.572.9317
@ericwilkens

FAQ

What notes is Verizon redeeming on June 15, 2020?

Verizon is redeeming the 2.375% Notes due February 17, 2022, and the 0.500% Notes due June 2, 2022.

What is the total amount of the 2.375% Notes being redeemed by Verizon?

The total amount of the 2.375% Notes being redeemed is €935,347,000.

What is the total amount of the 0.500% Notes being redeemed by Verizon?

The total amount of the 0.500% Notes being redeemed is €453,963,000.

How will Verizon calculate the redemption price for the notes?

The redemption price will be calculated based on either the principal amount or the present values of remaining scheduled payments discounted to the redemption date.

What is the significance of this redemption for Verizon's financial position?

This redemption allows Verizon to optimize its debt structure and potentially improve its cash flow.