01—Abstract
Summary
Summary of the 8-K filed November 10, 2025. Cited figures are marked; the original filing is the authoritative source.
Verizon Communications Inc. has successfully closed two significant debt offerings on November 10, 2025, raising a total of €2.25 billion and £1 billion through the issuance of junior subordinated notes.
The Euro notes carry a fixed interest rate of 3.9962%a and mature in 2056, while the Sterling notes bear a fixed interest rate of 5.7420% and also mature in 2056. These offerings were completed under an effective shelf registration statement filed earlier in the year. These debt issuances are noteworthy as they represent a move to secure long-term financing.
Investors should note the substantial principal amounts raised and the respective interest rates, which provide insights into Verizon's cost of capital and its strategy for managing its debt structure. The issuance of subordinated notes typically means these obligations rank below other senior debt in the event of bankruptcy, which can imply a higher risk profile for these specific notes compared to senior unsecured debt, but also often commands a higher yield.
02—Key points
Key Highlights
- Verizon closed offerings for €2.25 billion in 3.9962% Fixed-to-Fixed Rate Junior Subordinated Notes due 2056.
- Verizon closed offerings for £1 billion in 5.7420% Fixed-to-Fixed Rate Junior Subordinated Notes due 2056.
- Both note issuances mature in 2056, indicating long-term debt financing.
- The offerings were conducted under an effective shelf registration statement (Reg. No. 333-289928).
- The filing includes the forms of the global notes as exhibits.
- A syndicate of major financial institutions acted as purchasers for both offerings.
03—Questions
Frequently Asked Questions
What is the total amount of debt Verizon raised in these offerings?
Verizon raised a total of €2.25 billion in Euro notes and £1 billion in Sterling notes.
What are the interest rates and maturity dates for these new notes?
The Euro notes have a fixed rate of 3.9962% and mature in 2056. The Sterling notes have a fixed rate of 5.7420% and also mature in 2056.
Why did Verizon issue junior subordinated notes instead of senior debt?
Issuing junior subordinated notes can be a strategy to diversify funding sources, potentially achieve lower borrowing costs on senior debt by having a stronger equity cushion, or meet specific investor demand for these types of instruments. These notes typically carry a higher interest rate than senior debt due to their subordinate status in the capital structure.
What does it mean that these notes are 'junior subordinated'?
Junior subordinated notes are a type of debt that ranks below senior debt (both secured and unsecured) and other senior subordinated debt in priority of payment in the event of bankruptcy or liquidation. This means that in a liquidation scenario, holders of junior subordinated notes would be paid only after all senior debt holders have been satisfied.
04—Continue