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).