Order books on Verizon bond hit USD40bn - sources

Tue Sep 10, 2013 9:48am EDT

LONDON, Sept 10 (IFR) - Order books on Verizon Communications' multi-tranche bond had reached USD40bn by 9am on Tuesday, market sources said, signalling that the issuer was on target to print the biggest corporate deal on record.

Price guidance on the deal, which will finance Verizon's purchase of Vodafone's 45% stake in Verizon Wireless, is expected to be announced later on Tuesday and is likely to be in line with initial guidance released on Monday, sources previously said.

The deal consists of eight tranches, including two floating rate notes with three- and five-year maturities and six fixed rate tranches with maturities of three-, five-, seven-, 10-, 20- and 30-years.

Initial price thoughts on the fixed rate tranches were set at Treasuries plus 165bp on the three-year, T+190bp on the five-year, T+215bp on the seven-year, T+225bp on the 10-year, T+250bp on the 20-year and T+265bp on the 30-year.

Active bookrunners Barclays, BofA Merrill Lynch, JP Morgan and Morgan Stanley are due to close books on Tuesday, with pricing scheduled for Wednesday.

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