Verizon Stands to Pay $5.1B in Additional Interest and 2 Other Dow Movers to Watch

| + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Verizon Communications Inc. (NYSE:VZ): Current price $48.05

A rally in Verizon’s bonds subsequent to its $49 billion offering indicates that the company will pay up to $5.1 billion more in interest for the certainty of finalizing the deal one week before the Federal Reserve could start tapering its record stimulus measures. Since the September 11 offering, yields on the securities have fallen off, with the $15 billion of 6.55 percent bonds due in September 2043 marking the biggest piece of the eight-part deal and trading at 109.5 cents on the dollar Tuesday, 9.6 cents higher than the issue price. This lowered the yield to 5.88 percent, implying that the company will pay roughly $101 million of extra interest per year on the notes than if it sold at the current market rates.

VZ 20130918

More Articles About:

To contact the reporter on this story: To contact the editor responsible for this story:

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business