(Reuters) -Verizon Communications is looking to raise about $10 billion in the corporate bond market to fund its $20 billion deal for Frontier, Bloomberg News reported on Monday, citing a person familiar with the matter. The wireless carrier filed for a five-part bond sale, earlier in the day, without disclosing a size. Initial price discussions […]
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Verizon seeks $10 billion from bond sale to fund Frontier deal, Bloomberg News reports
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(Reuters) -Verizon Communications is looking to raise about $10 billion in the corporate bond market to fund its $20 billion deal for Frontier, Bloomberg News reported on Monday, citing a person familiar with the matter.
The wireless carrier filed for a five-part bond sale, earlier in the day, without disclosing a size. Initial price discussions for the longest portion of the deal, a 40-year bond, are about 1.6 percentage points above Treasuries, the report said.
Verizon did not immediately respond to a Reuters request for comment.
The company agreed to buy Frontier last year for about $9.6 billion and absorb $10 billion in Frontier debt. It is looking to close its deal for the fiber-optic internet provider early next year, after receiving regulatory approval in May upon agreeing to end its diversity programs.
The news follows Meta Platforms’ biggest bond sale of up to $30 billion announced last month, as enterprises rush to fund costly artificial intelligence expansion plans.
Cloud infrastructure and software maker Oracle is also reportedly looking to raise $15 billion in bond sales.
(Reporting by Harshita Mary Varghese in Bengaluru;Editing by Arun Koyyur)