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$49 Billion Verizon Deal Prices, Tops List Of Largest Ever Bond Deals

Tyler Durden's picture





 

Just a little excess liquidity sloshing out there. Here is the full breakdown of the just priced, 8-part $49 billion deal, the largest ever. From Bloomberg:

  • VERIZON SELLS $4.25B 3Y FIXED NOTES AT T+165 BPS
  • VERIZON SELLS $2.25B 3Y FRN AT 3ML+153 BPS
  • VERIZON SELLS $4.75B 5Y FIXED NOTES AT T+190 BPS
  • VERIZON SELLS $1.75B 5Y FRN AT 3ML+175 BPS
  • VERIZON SELLS $4B 7Y NOTES AT +215 BPS
  • VERIZON SELLS $11B 10Y NOTES AT +225 BPS
  • VERIZON SELLS $6B 20Y BONDS AT +250 BPS
  • VERIZON SELLS $15B 30Y BONDS AT +265 BPS

One for every part of the bond curve. One wonders how much of an impact on general rates the interest rate hedging for this deal was, and how much higher yields in the increasingly more illiquid TSY market were taken as a result. One thing is certain: a whole lot of repledgeable collateral was just created.

And here is where the Verizon deal stands in the pantheon of all the previous record breaking IG deals.

Finally, the party tonight in NYC will be epic. The deal amounts to about $400-500 million in underwriter fees.

 


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