Verizon launches record $62 billion bond sale
NEW YORK CITY (AFP) - Verizon smashed records with a blockbuster US$49 billion (S$62 billion) bond sale on Wednesday as it gathers financing to buy Vodafone's stake in their Verizon Wireless joint venture.
The historic deal is larger than the gross domestic product of Tunisia or Lebanon and dwarfs by four times Apple's US$17 billion corporate bond sale in April, the largest in history.
Demand was "very strong," said Adrian Miller, director at GMP Securities, a broker-dealer.
"Despite its size, I think it was priced to move and indeed it did." For Verizon Communications, the offering came amid expectations of a further rise in long-term interest rates, which have been climbing from historical lows in recent months after the Federal Reserve signalled it would cut back its aggressive bond-buying programme.