Verizon launches record-breaking $49bn bond

Wed Sep 11, 2013 8:19am EDT

NEW YORK, Sept 11 (IFR) - Verizon Communications has launched a $49 billion eight-tranche bond that will partly finance its $130 billion buyout of its wireless operations Verizon Wireless.

The final size was within the $45 billion to $49 billion range that market sources flagged late on Tuesday following overwhelming demand in excess of $100 billion.

The tranche sizes and spreads have been fixed at $4.25 billion at Treasuries plus 165bp for the three-year fixed, $2.25 billion at three-month Libor plus 153bp for the three-year floating rate note, $4.75 billion at Treasuries plus 190bp for the five-year fixed, $1.75 billion at three-month Libor plus 175bp for the five-year FRN, $4 billion at Treasuries plus 215bp for the seven-year fixed, $11 billion Treasuries plus 225bp for the 10-year, $6.0 billion at Treasuries plus 250bp for the 20-year and $15 billion at Treasuries plus 265bp for the 30-year.

The deal eclipses Apple's USD17bn offering - the current record holder of the largest corporate bond - that priced in late April.

Over 3,000 orders from more than 800 investors were recorded, one lead said, adding that the $49bn trade is bigger than the combined size of the next three largest corporate bond deals in history: the USD17bn Apple trade, as well as offerings from Roche and Abbvie.

It is also larger than the GDP of some 90 countries.

Bookrunners Bank of America Merrill Lynch, Barclays, JP Morgan and Morgan Stanley will price the bonds later on Wednesday.

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