VZ · Verizon Communications Inc.

Verizon Communications Inc. completed a $4 billion debt offering on May 14, 2026, issuing two tranches of junior subordinated notes: $2 billion of 6.050% Fixed-to-Fixed Rate Junior Subordinated Notes due 2058 and $2 billion of 6.200% Fixed-to-Fixed Rate Junior Subordinated Notes due 2056. The notes were sold under an effective shelf registration statement (Reg. No. 333-289928) filed on August 29, 2025. The initial fixed interest periods extend to May 14, 2033 (for the 2058 notes) and May 14, 2036 (for the 2056 notes), after which rates reset every five years based on the Five-Year U.S. Treasury Rate plus a spread (1.813% for the 2058 notes, with step-ups of 0.25% and 1.00% at later dates; 2.042% for the 2056 notes). A key feature is the company's option to defer interest payments for up to 10 consecutive years without triggering default, subject to restrictions on dividends, stock repurchases, and payments on equal or junior debt during deferral periods. The notes are junior subordinated, ranking below all senior indebtedness. The offering was underwritten by a syndicate including BNP Paribas, Goldman Sachs, J.P. Morgan, Mizuho, Morgan Stanley, Santander, and Wells Fargo. This issuance increases Verizon's long-term debt and provides flexible financing with potential interest deferral, which may appeal to income-focused investors but carries higher risk due to subordination and deferral features.