8-KOther EventsExhibits & Filings

VERIZON COMMUNICATIONS INC 8-K Report, Corporate Update (Oct 27, 2017)

Filed October 27, 2017For Securities:VZ

Summary

Verizon Communications Inc. (VZ) filed an 8-K on October 27, 2017, to report the closing of a significant debt issuance. The company successfully sold a substantial amount of notes in Euros and Pounds Sterling, specifically €1.25 billion in 1.375% Notes due 2026, €750 million in 1.875% Notes due 2029, €1.5 billion in 2.875% Notes due 2038, and £1 billion in 3.375% Notes due 2036. This debt offering was conducted under an effective shelf registration statement and involved several major financial institutions as purchasers. The primary purpose of this filing is to incorporate the forms of these newly issued notes as exhibits to the existing registration statement. For investors, this indicates Verizon's ongoing strategy to manage its capital structure and potentially fund its operations or strategic initiatives through debt financing in international markets.

Key Highlights

  • 1Verizon closed a debt issuance on October 26, 2017, raising capital through multiple note offerings.
  • 2Total debt raised includes €1.25B (1.375% Notes due 2026), €750M (1.875% Notes due 2029), €1.5B (2.875% Notes due 2038), and £1B (3.375% Notes due 2036).
  • 3The debt was sold in Euros and Pounds Sterling, indicating international market activity.
  • 4The offering was made pursuant to a previously effective shelf registration statement on Form S-3.
  • 5The filing serves to incorporate the forms of the notes as exhibits to the registration statement.
  • 6The notes were sold to a group of purchasers including Barclays Bank PLC, Credit Suisse Securities (Europe) Limited, and Deutsche Bank AG, London Branch.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the closing of a debt issuance and to formally incorporate the forms of the newly issued notes as exhibits to Verizon's existing shelf registration statement filed on Form S-3. It serves as official notification of the completed sale of these debt securities.

Verizon raised a total of €4.25 billion and £1 billion through this debt issuance. Specifically, it issued €1.25 billion in 1.375% Notes due 2026, €750 million in 1.875% Notes due 2029, €1.5 billion in 2.875% Notes due 2038, and £1 billion in 3.375% Notes due 2036.

The notes have varying interest rates and maturity dates: 1.375% notes due 2026, 1.875% notes due 2029, 2.875% notes due 2038, and 3.375% notes due 2036.

Issuing debt in foreign currencies allows companies to access international capital markets, potentially diversify their funding sources, and may be beneficial for managing foreign currency exposures or funding international operations. The specific strategic reasons would be further detailed in other company disclosures or investor communications.