Verizon to add $2 billion to debt for Terremark deal

NEW YORK Fri Jan 28, 2011 9:30am EST

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NEW YORK (Reuters) - Verizon Communications Inc (VZ.N) would increase its net debt by $2 billion to help finance its planned $1.4 billion purchase of Terremark Worldwide Inc TMRK.O.

Verizon, which is buying Terremark to expand its information technology services for corporate customers, said on Friday that the deal would give it a lift of $500 million from a revenue increase, expense saving opportunities and capital savings.

It said the deal would not change its earnings per share in the near term but would increase earnings over a longer time frame. It did not give specifics.

Verizon said the deal, which it expects to close in the first quarter, would not affect operating cash flow in the near term.

(Reporting by Sinead Carew; editing by Gerald E. McCormick)

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