Verizon completed the issuance of €2.25 billion and £1 billion in junior subordinated notes due 2056 on November 10, 2025. The notes carry fixed coupon rates of 3.9962 % for the euro tranche and 5.7420 % for the pound tranche, and are structured as hybrid securities that can receive equity credit from rating agencies.
The primary stated use of proceeds is to redeem existing debt: all outstanding 1.45 % notes due 2026, part of the 4.125 % notes due 2027, and all 3 % notes due 2077, with the remaining funds earmarked for general corporate purposes. A separate $10 billion bond issuance announced on the same day was earmarked to finance the Frontier Communications acquisition.
Verizon’s purchase of Frontier Communications is valued at approximately $9.6 billion, with Verizon assuming an additional $10 billion of Frontier’s debt, bringing the total transaction value to about $19.6 billion. The company secured $10 billion in short‑term bank financing earlier in the year to support the deal.
Regulatory approval for the acquisition was largely secured in May 2025, though a few state‑level approvals remain pending. The transaction is expected to close in early 2026, or by the end of 2025 if all approvals are finalized.
The notes’ hybrid structure and long 2056 maturity allow Verizon to maintain a favorable leverage profile while providing flexibility to manage its debt portfolio. By redeeming higher‑cost debt, Verizon can reduce interest expense and extend its maturity ladder, supporting its broader strategy to expand its fiber‑optic and broadband footprint.
Dan Schulman, Verizon’s CEO, emphasized that the company is taking “bold and fiscally responsible action to redefine Verizon’s trajectory,” highlighting the importance of disciplined capital allocation and strategic investments in high‑growth areas such as broadband and fixed‑wireless access.
Analysts view the Frontier acquisition as a strategic move to strengthen Verizon’s high‑speed internet business, expanding its fiber network and positioning the company to compete more effectively with AT&T, T-Mobile, and other telecom players.
The combined financing package—junior subordinated notes, the $10 billion bond sale, and prior bank loans—demonstrates Verizon’s proactive approach to capital management, balancing debt redemption with the need to fund a large acquisition while preserving long‑term financial flexibility.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.