8-KRegulation FD

VERIZON COMMUNICATIONS INC 8-K Report, Regulation FD Disclosure (May 13, 2013)

Filed May 13, 2013For Securities:VZ

Summary

Verizon Communications Inc. (VZ) has filed a Form 8-K to disclose a significant distribution from its majority-owned subsidiary, Verizon Wireless. The Board of Representatives of Cellco Partnership d/b/a Verizon Wireless declared aggregate distributions of $7.0 billion, scheduled to be paid on June 25, 2013. This distribution will be allocated proportionally to the ownership interests in Verizon Wireless. As a result of this distribution, Verizon Communications Inc. is expected to receive $3.85 billion in cash, while its partner, Vodafone Group Plc, will receive $3.15 billion. This influx of cash for Verizon Communications could impact its financial flexibility, potentially for debt reduction, capital expenditures, or shareholder returns. Investors should monitor how this significant cash inflow is deployed.

Key Highlights

  • 1Verizon Wireless declared a $7.0 billion distribution to its owners.
  • 2The distribution is scheduled to be paid on June 25, 2013.
  • 3Verizon Communications Inc. will receive $3.85 billion from this distribution.
  • 4Vodafone Group Plc will receive $3.15 billion from this distribution.
  • 5The distribution is based on current ownership interests in Verizon Wireless.
  • 6This filing is made under Regulation FD Disclosure (Item 7.01).

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose a significant cash distribution of $7.0 billion declared by Verizon Wireless, a majority-owned subsidiary of Verizon Communications Inc., to its owners.

Verizon Communications Inc. is expected to receive cash payments aggregating $3.85 billion from the $7.0 billion distribution.

The distributions are scheduled to be paid on June 25, 2013.

This distribution represents a substantial cash inflow for Verizon Communications Inc. Investors may be interested in how the company plans to utilize this cash, which could include debt reduction, reinvestment in the business, or returning capital to shareholders.