Verizon sells $49B worth of bonds in largest sale ever
Eric Roden speaks on his cell phone as he walks past a Verizon store in Portland, Ore., Monday, July 28, 2008. (AP / Don Ryan)
Published Wednesday, September 11, 2013 2:22PM EDT
NEW YORK -- Verizon Communications has sold $49 billion in bonds, the largest corporate bond sale in history.
The sale dwarfs the previous record, Apple's sale of $17 billion in bonds in April.
The mammoth bond sale goes with a mammoth deal. Proceeds from the sale on Wednesday will help Verizon buy the rest of its U.S. wireless business from partner Vodafone. That $130 billion deal is expected to rank as the second-largest on record when completed. Verizon will use cash and stock for remainder of the buyout.
Verizon had to pay a hefty price to investors. It priced $11 billion-worth of 10-year notes at a yield of 5.19 per cent, according to a deal document obtained by The Associated Press. That is well above the 4.51 per cent yield for similar Verizon bonds.