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Verizon to start $50B bond offering tomorrow - report

  • Verizon Communications (VZ) reportedly plans to start marketing a $50B bond sale tomorrow in what would be the largest ever corporate-bond offering. The carrier is raising the money to help pay for the $130B acquisition of Vodafone's 45% holding in Verizon Wireless.
  • Verizon could offer bonds with maturities of up to 100 years, with longer-dated paper expected to represent a bigger-than-usual part of the deal so as not to depress the prices of Verizon's existing shorter-term debt.
  • Some hedge funds are skeptical that the new paper will be attractive enough and plan not to participate in the offering.
  • The sale comes at a difficult time - corporate-bond values have been falling, while Verizon has to compete with other companies that are also raising funds ahead of an expected rise in interest rates.
Comments (9)
  • docgastro
    , contributor
    Comments (31) | Send Message
     
    Not interested...not the bond offer and now no longer the service as well.
    8 Sep 2013, 02:09 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (5589) | Send Message
     
    umm... seems very early to raise cash on a deal not expected to close until Q1.
    8 Sep 2013, 03:02 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1500) | Send Message
     
    lower interest rates now than in 5 months?
    8 Sep 2013, 03:11 PM Reply Like
  • Dan Naumov
    , contributor
    Comments (310) | Send Message
     
    How exactly are you supposed to close the deal without the money?
    8 Sep 2013, 10:56 PM Reply Like
  • Swisser998
    , contributor
    Comments (128) | Send Message
     
    I'll put in an order for a billion...
    8 Sep 2013, 05:27 PM Reply Like
  • Grant Dossetto
    , contributor
    Comments (135) | Send Message
     
    This is utterly reckless.
    8 Sep 2013, 05:48 PM Reply Like
  • richard McDonough
    , contributor
    Comments (63) | Send Message
     
    Going to go out of stock Monday. Bad, bad plan.
    9 Sep 2013, 12:02 AM Reply Like
  • pfifla1
    , contributor
    Comments (468) | Send Message
     
    have held VZ for a while and to me it seems like VOD had them by the short hairs in this deal. it seems overvalued. I may too decide to exit the stock...

     

    On the flip side with telecom going more and more mobile VZ would be poised to reap ALL THE SPOILS as the market continues to grow. They have by far the best wireless network out there.
    9 Sep 2013, 12:43 AM Reply Like
  • bbro
    , contributor
    Comments (9167) | Send Message
     
    Baa bonds....this will be interesting....
    9 Sep 2013, 06:32 AM Reply Like
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