Verizon Communications Inc. ("Verizon") (NYSE, NASDAQ: VZ) today announced the accepted amounts and pricing terms of its previously announced 15 separate offers to purchase the outstanding series of notes listed in the table below (collectively, the "Notes") for a total cash amount of up to approximately $4.9 billion. We refer to each offer to purchase a series of Notes for cash as an "Offer" and, collectively, as the "Offers." The Offers are made on the terms and subject to the conditions set forth in the Offer to Purchase dated October 26, 2021 (the "Offer to Purchase").
The "Early Participation Date" was 5:00 p.m. (Eastern time) on November 8, 2021. Withdrawal rights for the Offers expired at 5:00 p.m. (Eastern time) on November 8, 2021. The Offers will each expire at 5:00 p.m. (Eastern time) on November 24, 2021, unless extended or earlier terminated by Verizon (the "Expiration Date").
As previously announced, all conditions to the Offers were deemed satisfied by Verizon by the Early Participation Date, or timely waived by Verizon. Accordingly, Verizon will settle all Notes validly tendered and not validly withdrawn at or prior to the Early Participation Date and accepted for purchase, on November 10, 2021 (the "Early Settlement Date"). Because the aggregate principal amount of Notes validly tendered at or prior to the Early Participation Date exceeded the Waterfall Cap, there will be no Final Settlement Date, and no Notes tendered after the Early Participation Date will be accepted for purchase. Accordingly, all Notes validly tendered and not validly withdrawn at or prior to the Early Participation Date with (i) an Acceptance Priority Level of 4 or higher have been accepted for purchase and (ii) an Acceptance Priority Level lower than 4 have not been accepted for purchase.
The table below indicates, among other things, the aggregate principal amount of Notes accepted in each Offer, the Offer Yield (as defined below), and the total consideration for each $1,000 principal amount of each series of Notes validly tendered at or prior to the Early Participation Date and accepted for purchase (the "Total Consideration"), as calculated at 9:00 a.m. (Eastern time) today, November 9, 2021 (the "Price Determination Date") in accordance with the terms of the Offer to Purchase:
Acceptance Priority CUSIP Title of Security Principal Principal Amount Principal Offer Total Level Number Amount Tendered as of the Amount Yield Consideration Outstanding Early Accepted Participation Date 1 92343VCM4 5.012% notes due 2054 $1,121,969,000 $294,851,000 $294,851,000 2.971% $1,425.66 2 92343VCZ5 4.672% notes due 2055 $1,687,975,000 $836,185,000 $836,185,000 3.001% $1,350.56 3 92343VDS0 5.012% notes due 2049 $1,044,017,000 $320,019,000 $320,019,000 2.921% $1,392.71 4 92343VCX0 4.522% notes due 2048 $3,659,599,000 $2,235,116,000 $2,235,116,000 2.921% $1,296.44
(1) The "Offer Yield" is equal to the sum of (a) the applicable reference yield, as calculated by the lead dealer managers, that equates to the bid-side price of the applicable Reference U.S. Treasury Security (specified in Verizon's press release dated October 26, 2021 announcing the Offers (the "Launch Press Release") for such series of Notes) as quoted on the Bloomberg reference page "FIT1" as of 9:00 a.m. (Eastern time) today, plus (b) the fixed spread for the applicable series of Notes.
(2) Payable per each $1,000 principal amount of each specified series of Notes validly tendered at or prior to the Early Participation Date and accepted for purchase.
The applicable Total Consideration that will be paid on the Early Settlement Date for each series of Notes accepted for purchase includes an early participation payment of $50 per $1,000 principal amount of Notes, but does not include the applicable Accrued Coupon Payment (as defined in the Launch Press Release), which will be paid, in cash, in addition to the applicable Total Consideration.
Verizon has retained BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC to act as lead dealer managers for the Offers and Loop Capital Markets LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., CastleOak Securities, L.P., MFR Securities, Inc. and Tigress Financial Partners, LLC to act as co-dealer managers for the Offers. Questions regarding terms and conditions of the Offers should be directed to BNP Paribas Securities Corp. at (888) 210-4358 (toll-free) or (212) 841-3059 (collect), Citigroup Global Markets Inc. at (800) 558-3745 (toll-free) or (212) 723-6106 (collect), Goldman Sachs & Co. LLC at (800) 828-3182 (toll-free) or (212) 357-1452 (collect), or Wells Fargo Securities at (866) 309-6316 (toll-free) or (704) 410-4756 (collect).
Global Bondholder Services Corporation is acting as the Tender Agent and the Information Agent for the Offers. Questions or requests for assistance related to the Offers or for additional copies of the Offer to Purchase may be directed to Global Bondholder Services Corporation at (866) 470-4300 (toll free) or (212) 430-3774 (collect). You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Offers.
This announcement is for informational purposes only. This announcement is not an offer to purchase or a solicitation of an offer to purchase any Notes. The Offers are being made solely pursuant to the Offer to Purchase. The Offers are not being made to Holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Offers to be made by a licensed broker or dealer, the Offers will be deemed to be made on behalf of Verizon by the dealer managers or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This communication has not been approved by an authorized person for the purposes of Section 21 of the Financial Services and Markets Act 2000, as amended (the "FSMA"). Accordingly, this announcement is not being distributed to, and must not be passed on to, persons within the United Kingdom save in circumstances where section 21(1) of the FSMA does not apply.
Accordingly, in the United Kingdom, this communication is only addressed to and directed at persons falling within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Financial Promotion Order")) or within Article 43 of the Financial Promotion Order or high net worth companies and other persons to whom it may lawfully be communicated falling within Article 49(2)(a) to (d) of the Financial Promotion Order, or to other persons to whom it may otherwise lawfully be communicated by virtue of an exemption to Section 21(1) of the FSMA or otherwise in circumstances where it does not apply (such persons together being "relevant persons"). Any person who is not a relevant person should not act or rely on any document relating to the Offers or any of their contents.
This communication and any other documents or materials relating to the Offer are only addressed to and directed at persons in member states of the European Economic Area (the "EEA"), who are "Qualified Investors" within the meaning of Article 2(1)(e) of Regulation (EU) 2017/1129. The Offer is only available to Qualified Investors. None of the information in the Offer to Purchase and any other documents and materials relating to the Offer should be acted upon or relied upon in any member state of the EEA by persons who are not Qualified Investors.
Each Holder participating in the Offers will give certain representations in respect of the jurisdictions referred to above and generally as set out herein. Any tender of Notes for purchase pursuant to the Offers from a Holder that is unable to make these representations will not be accepted. Each of Verizon, the Dealer Managers, the Tender Agent and the Information Agent reserves the right, in its absolute discretion, to investigate, in relation to any tender of Notes for purchase pursuant to the Offers, whether any such representation given by a Holder is correct and, if such investigation is undertaken and as a result Verizon determines (for any reason) that such representation is not correct, such tender shall not be accepted.
Cautionary Statement Regarding Forward-Looking Statements
In this communication Verizon has made forward-looking statements. These forward-looking statements are not historical facts, but only predictions and generally can be identified by use of statements that include phrases such as "will," "may," "should," "continue," "anticipate," "believe," "expect," "plan," "appear," "project," "estimate," "intend," or other words or phrases of similar import. Similarly, statements that describe our objectives, plans or goals also are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those currently anticipated, including those discussed in the Offer to Purchase under the heading "Risk Factors" and under similar headings in other documents that are incorporated by reference in the Offer to Purchase. Holders are urged to consider these risks and uncertainties carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release are made only as of the date of this press release, and Verizon undertakes no obligation to update publicly these forward-looking statements to reflect new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events might or might not occur. Verizon cannot assure you that projected results or events will be achieved.