Verizon May Take 100-Years to Repay Vodafone Deal Debts
Published on: 9th Sep 2013
By: Ian Mansfield
USA based Verizon Communications is looking to issue debt that wouldn't have to be repaid for as long as a hundred years as it seeks to finance its $130 billion Vodafone buyout deal.
Verizon is looking to raise USD50 billion in the coming weeks in a bond issue which the Financial Times reports is proving difficult for brokers to arrange.
The company faces a potential USD10 billion breakup fee if it is unable to raise the funds for the Vodafone deal, although it said at that it has secured USD61 billion in bridging loans. It needs to still convert those short term loans into long term debt.
The have been concerns that investors would be wary of the impact of a large tranch of 10-year debt being issued by the company, and may look for longer term debt issuance to mitigate that impact.
Verizon's debt offering is likely to be spread across different currencies, with the dollar slice likely to exceed USD20 billion.
On the web: Financial Times