Verizon announces early results for tender offers and extension of early participation date
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NEW YORK - Verizon Communications Inc. (“Verizon”) (NYSE, NASDAQ: VZ) today announced, in connection with Verizon’s previously announced Offers (as defined below) to purchase its outstanding Securities (as defined below) on the terms and subject to the conditions set forth in the offer to purchase dated November 7, 2024 (the “Offer to Purchase”): (1) the early participation results for the Offers as of 5:00 p.m. (Eastern time) on November 21, 2024 (the “Original Early Participation Date”) and (2) that, with respect to the Offers, the date and time by which Holders (as defined below) must validly tender their Securities to receive the applicable Total Consideration (as defined in the Offer to Purchase) and Accrued Coupon Payment (as defined below), has been extended to 5:00 p.m. (Eastern time) on December 9, 2024 (such date and time with respect to an Offer, the “Extended Early Participation Date”). Accordingly, the Extended Early Participation Date will occur at the same time the Offers are scheduled to expire. Except as described in this press release, the terms and conditions of the Offers remain unchanged.
The deadline to validly withdraw tenders of Securities was not modified by Verizon and the withdrawal rights for each Offer expired at 5:00 p.m. (Eastern time) on November 21, 2024. The Offers will expire at 5:00 p.m. (Eastern time) on December 9, 2024 (the “Expiration Date”), unless extended or earlier terminated by Verizon.
The table below sets forth the early participation results, as of the Original Early Participation Date, for Verizon’s previously announced six separate offers to purchase for cash, with respect to the outstanding series of debt securities (each a “Security” and collectively, the “Securities”) listed in the table below. Verizon refers to each offer to purchase a Security for cash as an “Offer” and all the offers to purchase the Securities, collectively as the “Offers.”
Verizon was advised by Global Bondholder Services Corporation, as the tender agent, that as of the Original Early Participation Date, the aggregate principal amounts of the Securities specified in the table below were validly tendered and not validly withdrawn:
Acceptance Priority Level | CUSIP Number(s) | Title of Security | Principal Amount Outstanding | Principal Amount Tendered as of the Original Early Participation Date | Percentage of Amount Outstanding Tendered as of the Original Early Participation Date |
|---|---|---|---|---|---|
1 | 92343VEN0 / 92343VEB6 / U9221AAY4 | 3.376% notes due 2025 | $1,287,477,000 | $490,854,000 | 38.13% |
92343VEP5 | Floating Rate notes due 2025 | $873,918,000 | $373,004,000 | 42.68% | |
3 | 92343VFS8 | 0.850% notes due 2025 | $1,232,569,000 | $542,142,000 | 43.98% |
4 | 92343VGG3 | 1.450% notes due 2026 | $1,653,140,000 | $803,974,000 | 48.63% |
5 | 92343VGE8 | Floating Rate notes due 2026 | $493,127,000 | $252,796,000 | 51.26% |
6 | 92343VDD3 | 2.625% notes due 2026 | $1,776,821,000 | $771,770,000 | 43.44% |
Verizon’s obligation to accept Securities tendered in the Offers is subject to the terms and conditions described in the Offer to Purchase, including, among other things, the Acceptance Priority Procedures. The Offers are not conditioned on any minimum amount of Securities being tendered, and none of the Offers is conditioned on the consummation of any of the other Offers.
All conditions applicable to the Offers as of the Original Early Participation Date were deemed satisfied by Verizon, or timely waived by Verizon. Accordingly, Verizon will settle all Securities validly tendered at or prior to the Original Early Participation Date and accepted for purchase, on November 26, 2024 (the “Early Settlement Date”), subject to the terms of the Offers.
Because the aggregate Total Consideration of the Securities validly tendered at or prior to the Original Early Participation Date and accepted for purchase is expected to not exceed the Waterfall Cap (as defined in the Offer to Purchase), Verizon will, until the Expiration Date, continue to accept for purchase all Securities validly tendered after the Original Early Participation Date, subject to all conditions having been satisfied or waived by Verizon with respect to the Offers. The Final Settlement Date (as defined in the Offer to Purchase) is expected to be the second business day after the applicable Expiration Date, unless extended with respect to any Offer.
On each relevant settlement date, holders of Securities (each, a “Holder” and collectively, “Holders”) that are validly tendered and accepted for purchase by Verizon will receive the applicable Total Consideration, in cash, and an additional cash payment equal to the accrued and unpaid interest on such Securities to, but not including, the relevant settlement date (the “Accrued Coupon Payment”).
Verizon has retained BofA Securities, Inc., Santander US Capital Markets LLC, SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC to act as lead dealer managers for the Offers and Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Academy Securities, Inc. and R. Seelaus & Co., LLC to act as co-dealer managers for the Offers. Questions regarding terms and conditions of the Offers should be directed to BofA Securities, Inc. at (980) 387-3907 (Collect) or (888) 292-0070 (Toll-Free), Santander US Capital Markets LLC at (212) 350-0660 (Collect) or (855) 404-3636 (Toll Free), SMBC Nikko Securities America, Inc. at (212) 224-5163 (Collect) or (888) 284-9760 (Toll Free), or TD Securities (USA) LLC at (212) 827-2842 (Collect) or (866) 584-2096 (Toll-Free).
Global Bondholder Services Corporation is acting as the tender 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 (855) 654-2015 (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 sell any Securities. The Offers are being made solely pursuant to the Offer to Purchase. The Offers are not being made to Holders 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 and any other documents or materials relating to the Offers have 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, this communication is only addressed to and directed at (i) persons who are outside the United Kingdom, or (ii) 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 (iii) within Article 43 of the Financial Promotion Order, or (iv) 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 (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 Offers 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 Offers are only available to Qualified Investors. None of the information in the Offer to Purchase and any other documents and materials relating to the Offers 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 Securities 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 and the tender agent reserves the right, in its absolute discretion, to investigate, in relation to any tender of Securities 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.