Verizon needs to raise $130 billion to fund its acquisition of Vodafone’s stake in Verizon Wireless and the carrier could be planning a huge $50 billion bond sale for part of the bill.
The Financial Times [sub. req.] spoke with people familiar with the deal who see Verizon in the next few weeks selling bonds with maturities reaching up to 100 years. The longer-dated maturities could account for more of the sale than normal in a corporate bond sale.
JP Morgan, Barclays and Morgan Stanley are all reportedly underwriting the deal.
The reports note that the deal will likely take on multiple currencies but the U.S. dollar portion could hit $20 billion, eclipsing Apple’s $17 billion bond sale in April.
Earlier this month, Verizon finally realized its long-gestating ambition to fully own Verizon Wireless by buying out Vodafone’s 45-percent stake for $58.9 billion in cash and $60.2 billion in stock. Verizon is further issuing $5 billion in senior notes to Vodafone and selling off its 23-percent stake in Vodafone Omnitel NV for $3.5 billion. That leaves another $2.5 billion, which a gigantic bond sale like Verizon’s said to be planning would more than take care of.