The retail fee details of the Verizon Communications USD12 billion loans have been released according to sources. The loans are a USD6 billion three year loan and another USD6 billion five year term loan. Both loans would be launched in a bank meeting to be held.
The company has offered 35 basis points above LIbOR for commitments above USD125 million or above while for commitments under USD125 million, the rate is at 30 basis points above LIbOR. The minimum debt commitment was set at USD25 milion.
Previously, reports pegged the three year loan at LIbOR+137.5 basis points while the five year loan pegged the price at LIbOR+150 basis points. Alongside the loan was the syndication of a USD2 billion 364 day revolving credit facility as well as a USD49 billion bridge to bonds loan at a co-arranger level. The said bridge loan is pegged at LIbOR+150 bp while the revolver would have LIbOR+10bp for unuitlized amounts with drawn pricing at LIbOR+125 bp.
All the loans were part of the USD130 billion financing for the buyout of Vodafone Group from the Verizon Wireless venture. This consists of 45% of shares previously owned by Vodafone.
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