Verizon may announce jumbo bond on Monday -sources
NEW YORK, Sept 9 (IFR) - The much anticipated jumbo USD20bn-USD35bn Verizon Communications bond issue could be announced as early as this afternoon, several market sources said on Monday.
It is believed the bookrunners Bank of America, Barclays, JP Morgan and Morgan Stanley are discussing the possibility of announcing the deal later today given its complexity and sheer size.
Talk is that the transaction has the potential to have 10 tranches, the sources said.
"The announcement sounds like it could get accelerated to this afternoon," said one investment grade syndicate manager away from the deal. "The world knows the trade is coming and meetings can still go on. They may as well get it out there and get investors involved."
Bankers at the bookrunners refused to comment.
Syndicate desks were hearing the deal could include tranches of three-year fixed and floating rate securities, five-year fixed and floaters, as well as seven, 10, 20, 30, 50 and possibly even a 100 year portion.
The deal is expected to come with significant new issue concession relative to outstandings.
Talk last week was that the world's biggest investors were indicating their willingness to participate in a 10-year bond which bookrunners were airing around Treasuries plus 200bp. One investor said he had heard the 10-year bonds to carry a spread of high 100s to 200bp.
That compares with Verizon 2022s trading at around T+120bp (G+143bp) before acquisition news and about T+151bp or G+165bp this morning, from T+155bp (G+170bp) late last week.
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