Verizon Launches $3.75B Junior Subordinated Notes Offering
VZ sits 22% above its 52-week low of $38.39.
Summary
Verizon filed for a two-part $3.75 billion junior subordinated notes offering. The size is modest relative to its $195B market cap and existing $25B buyback program, but it adds to the company's debt stack. This follows a period of aggressive cost-cutting and a strong Q2 subscriber beat, suggesting the raise is for general corporate purposes rather than distress. The offering's terms and pricing will determine the impact on leverage and interest costs.
At the time of this announcement, VZ was trading at $46.95 on NYSE in the Trade & Services sector, with a market capitalization of approximately $195.4B. The 52-week trading range was $38.39 to $51.68. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.