US telecoms group Verizon Communications has sold $1.5 billion in bonds to pay off some of its short-term debt. The new bonds include $1 billion in 10-year notes and $500 million in 30-year notes.
Verizon decided to revamp its financial structure last week, after rating agencies Moody’s and Standard & Poor’s criticized its dependence on short-term borrowings. However, the company still has investment grade (A1 and A+) credit ratings.
The company is the US’ largest fixed-line operator and also owns 60% of Verizon Wireless, a joint venture with Vodafone. It plans to cut debt this year by selling $2.8 billion of fixed-line assets, and could also see a $1.7 billion deposit returned by the FCC.
