Verizon to redeem debt securities on March 18, 2025

Rhea-AI Summary

Verizon Communications (NYSE, NASDAQ: VZ) has announced plans to redeem its Floating Rate Notes due 2025 on March 18, 2025. The redemption affects notes with a principal amount outstanding of $487,396,000. The redemption price will be equal to 100% of the principal amount plus accrued and unpaid interest up to the redemption date.

The notes being redeemed are identified by CUSIP: 92343V EP5, ISIN: US92343VEP58, and Common Code: 182168670. U.S. Bank Trust Company, National Association will serve as the paying agent for this transaction.

Positive

• Debt reduction initiative through early redemption of $487.4 million in notes
• Full principal repayment at 100% demonstrates strong financial position

Negative

• None.

Insights

Fixed Income Analyst

This debt redemption announcement reveals several strategic implications for Verizon's financial position. The company is exercising its option to redeem $487.4 million in floating rate notes ahead of their maturity, demonstrating proactive balance sheet management. The timing is particularly noteworthy given the current interest rate environment and Verizon's substantial debt portfolio.

The decision to redeem these notes at par value suggests that Verizon likely sees opportunities to optimize its debt structure, potentially through refinancing at more favorable terms or using existing cash resources. For context, this redemption represents a relatively small portion of Verizon's total debt load, which exceeds $130 billion. However, the move signals continued focus on liability management and could be part of a broader strategy to reduce exposure to floating rate debt in anticipation of future interest rate movements.

From a credit perspective, this early redemption is a positive indicator of Verizon's liquidity position and financial flexibility. The company's ability to retire debt ahead of schedule, even if modest in size, demonstrates strong cash flow generation and prudent financial management. This action may also help optimize interest expenses and improve debt maturity profiles, contributing to more predictable cash flow requirements.

NEW YORK, Feb. 14, 2025 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (“Verizon”) (NYSE, NASDAQ: VZ) today announced that it will redeem the following notes on March 18, 2025 (the “Redemption Date”):

I.D. Number	Title of Security	Principal Amount Outstanding
CUSIP: 92343V EP5 ISIN: US92343VEP58 Common Code: 182168670	Floating Rate Notes due 2025 (the “Notes”)	$487,396,000

The redemption price for the Notes will be equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest to the Redemption Date.

Questions relating to the notice of redemption and related materials should be directed to the paying agent: U.S. Bank Trust Company, National Association, Attn: Corporate Trust Services, 111 Fillmore Ave E, St. Paul, MN 55107, or via telephone at 1-800-934-6802.

Media contact:
Katie Magnotta
katie.magnotta@verizon.com
201-602-9235

FAQ

What is the total value of Verizon (VZ) notes being redeemed in March 2025?

Verizon is redeeming Floating Rate Notes with a principal amount of $487,396,000 on March 18, 2025.

What is the redemption price for Verizon's (VZ) March 2025 note redemption?

The redemption price will be 100% of the principal amount plus accrued and unpaid interest up to March 18, 2025.

When will Verizon (VZ) redeem its Floating Rate Notes due 2025?

Verizon will redeem these notes on March 18, 2025.

Who is the paying agent for Verizon's (VZ) March 2025 note redemption?

U.S. Bank Trust Company, National Association is serving as the paying agent for this redemption.