Verizon in $3.75 Billion Hybrid Bond Offering

Cleary Gottlieb represented Verizon Communications Inc. (Verizon) in a USD hybrid bond offering of $2 billion 6.6% fixed-to-fixed rate junior subordinated notes due 2059 and $1.75 billion 6.75% fixed-to-fixed rate junior subordinated notes due 2057.

Verizon will use the net proceeds for general corporate purposes. The transactions priced on August 10, 2026, and closed on August 13, 2026.

The notes were structured as hybrid securities to receive equity credit from the rating agencies. As a result, the notes include features of traditional debt (such as a fixed maturity date and regular interest payments) and traditional equity (such as the right to defer current payments without causing an event of default), as well as redemption rights upon the occurrence of a “Tax Event” or “Rating Agency Event.”

The offerings are the fifth in a series of Verizon hybrid bond offerings represented by Cleary since November 2025, following a $4 billion offering in May 2026, A$1.3 billion offering in March 2026, €2.25 billion and £600 million offerings in February 2026, and €2.25 billion and £1 billion offerings in November 2025.

Verizon is a holding company that, acting through its subsidiaries, is one of the world’s leading providers of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities.

The Cleary corporate team includes partner Lesley Janzen, counsel Elizabeth Chang, associate Marc Chien, and law clerk Crystal Lee. Partner Matthew Brigham and associate Banu Dzhafarova advised on tax matters.