| NEW YORK, July 18
NEW YORK, July 18 Verizon Communications Inc
is in the market with $11.3 billion in loans that will
cut borrowing costs on debt backing the $130 billion takeover of
Verizon Wireless from Vodafone Group Plc, the
third-biggest acquisition in corporate history, sources told
Thomson Reuters LPC.
JP Morgan, Citigroup, Bank of America Merrill Lynch,
Barclays, Morgan Stanley and Wells Fargo are leading the
Verizon declined to comment.
BAML, JP Morgan, Citi and Morgan Stanley also declined to
comment. Barclays and Wells Fargo could not be reached by press
The refinancing aims to increase an existing revolver to $8
billion from $6.2 billion, extend the maturity date from August
12, 2017, to July 31, 2018, and lower pricing. The new revolver
also replaces an existing $2 billion, 364-day revolving credit.
The $8 billion, four-year revolver will pay 10bp undrawn for
current ratings of Baa1/BBB+. If drawn, the revolver pays
In addition, the company is seeking to amend its existing
$3.3 billion, five-year term loan. Pricing on the term loan
opens at LIB+125.
In September 2013, Verizon announced its plans to acquire
the 45 percent stake in Verizon Wireless that it did not already
own from Vodafone. The acquisition was backed with a $61 billion
bridge loan led by JP Morgan, Morgan Stanley, BAML and Barclays.
JP Morgan and Morgan Stanley were global coordinators of the
The $61 billion bridge loan was replaced with $49 billion of
bonds and $12 billion in three- and five-year term loans.
Separately, the financing included a $2 billon, 364-day
Pricing on the $6 billion, three-year term loan and $6
billion, five-year term loan is LIB+137.5 and LIB+150,
respectively. The $2 billion, 364-day revolver pays 10bp on
undrawn amounts. Drawn pricing on the facility is LIB+125.
In February, the company drew $6.6 billion in term loans
evenly split between the three-year and five-year facilities.
The $3.3 billion in term debt currently being refinanced is
outstanding under the five-year facility.
Also in September 2013, the company refinanced a $6.2
billion four-year revolver. The revolver pays 10bp undrawn.
On January 28, shareholders of both Vodafone and Verizon
approved Verizon's $130 billion takeover of their Verizon
(Editing By Jon Methven)