- 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.
Verizon to start $50B bond offering tomorrow - report
Sep 8 2013, 05:18 ET