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Verizon sells $49B worth of bonds in largest sale ever; will help pay for wireless business

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FILE - In this Thursday, June 6, 2013, file photo, pedestrians use their cell phones as they pass a Verizon Wireless store near Union Square, in New York. Verizon Communications announced Wednesday, Sept 11, 2013, it has sold 9 billion in bonds, the largest corporate bond sale in history. (AP Photo/John Minchillo, File)

NEW YORK, N.Y. – 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.

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The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.

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