Verizon Wireless 2012 Annual Report Download - page 67

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2012
On November 2, 2012, we announced the commencement of a tender
offer (the Tender Offer) to purchase for cash any and all of the out-
standing $1.25 billion aggregate principal amount of 8.95% Verizon
Communications Notes due 2039. In the Tender Offer that was com-
pleted November 9, 2012, $0.9 billion aggregate principal amount of the
notes was purchased at a price of 186.5% of the principal amount of the
notes (see “Early Debt Redemption and Other Costs” below) and $0.35
billion principal amount of the notes remains outstanding. Any accrued
and unpaid interest on the principal purchased was paid to the date of
purchase.
During November 2012, we issued $4.5 billion aggregate principal
amount of fixed rate notes resulting in cash proceeds of approximately
$4.47 billion, net of discounts and issuance costs. The issuances consisted
of the following: $1.0 billion of 0.70% Notes due 2015, $0.5 billion of 1.10%
Notes due 2017, $1.75 billion of 2.45% Notes due 2022 and $1.25 bil-
lion of 3.85% Notes due 2042. During December 2012, the net proceeds
were used to redeem: $0.7 billion of the $2.0 billion of 8.75% Notes due
November 2018 at a redemption price of 140.2% of the principal amount
of the notes (see “Early Debt Redemption and Other Costs” below), $0.75
billion of 4.35% Notes due February 2013 at a redemption price of 100.7%
of the principal amount of the notes and certain telephone subsidiary
debt (see “Telephone and Other Subsidiary Debt” below), as well as for
the Tender Offer and other general corporate purposes. Any accrued and
unpaid interest was paid to the date of redemption.
In addition, during 2012 we utilized $0.2 billion under fixed rate vendor
financing facilities.
2011
During March 2011, we issued $6.25 billion aggregate principal amount of
fixed and floating rate notes resulting in cash proceeds of approximately
$6.19 billion, net of discounts and issuance costs. The issuances consisted
of the following: $1.0 billion of Notes due 2014 that bear interest at a
rate equal to three-month London Interbank Offered Rate (LIBOR) plus
0.61%, $1.5 billion of 1.95% Notes due 2014, $1.25 billion of 3.00% Notes
due 2016, $1.5 billion of 4.60% Notes due 2021 and $1.0 billion of 6.00%
Notes due 2041. The net proceeds were used for the repayment of com-
mercial paper and other general corporate purposes, as well as for the
redemption of certain telephone subsidiary debt during April 2011 (see
“Telephone and Other Subsidiary Debt” below).
During November 2011, we issued $4.6 billion aggregate principal
amount of fixed rate notes resulting in cash proceeds of approximately
$4.55 billion, net of discounts and issuance costs. The issuances consisted
of the following: $0.8 billion of 1.25% Notes due 2014, $1.3 billion of 2.00%
Notes due 2016, $1.9 billion of 3.50% Notes due 2021 and $0.8 billion of
4.75% Notes due 2041. During November 2011, the net proceeds were
used to redeem $1.0 billion of 7.375% Verizon Communications Notes
due September 2012 at a redemption price of 105.2% of principal amount
of the notes, $0.6 billion of 6.875% Verizon Communications Notes due
June 2012 at a redemption price of 103.5% of principal amount of the
notes and certain telephone subsidiary debt (see “Telephone and Other
Subsidiary Debt” below), as well as for the repayment of commercial paper
and other general corporate purposes. Any accrued and unpaid interest
was paid to the date of redemption. In addition, we settled the interest
rate swap with a notional value totaling $1.0 billion related to the $1.0
billion of 7.375% Verizon Communications Notes due September 2012.
During 2011, $0.5 billion of 5.35% Verizon Communications Notes
matured and were repaid and we utilized $0.3 billion under fixed rate
vendor financing facilities.
The debt obligations of Terremark that were outstanding at the time of
its acquisition by Verizon were repaid during the second quarter of 2011.
Verizon Wireless – Notes Payable and Other
Verizon Wireless Capital LLC, a wholly owned subsidiary of Verizon
Wireless, is a limited liability company formed under the laws of Delaware
on December 7, 2001 as a special purpose finance subsidiary to facilitate
the offering of debt securities of Verizon Wireless by acting as co-issuer.
Other than the financing activities as a co-issuer of Verizon Wireless
indebtedness, Verizon Wireless Capital LLC has no material assets, opera-
tions or revenues. Verizon Wireless is jointly and severally liable with
Verizon Wireless Capital LLC for co-issued notes.
2012
During February 2012, $0.8 billion of 5.25% Verizon Wireless Notes
matured and were repaid. During July 2012, $0.8 billion of 7.0% Verizon
Wireless Notes matured and were repaid.
2011
During May 2011, $4.0 billion aggregate principal amount of Verizon
Wireless two-year fixed and floating rate notes matured and were repaid.
During December 2011, we repaid $0.9 billion upon maturity for the €0.7
billion of 7.625% Verizon Wireless Notes and the related cross currency
swap was settled.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued