NEW YORK-Verizon Wireless signed a fixed-rate promissory note permitting the carrier to borrow, repay and re-borrow up to $9 billion from parent company Verizon Communications Inc., with a maturity date of Aug. 1, 2009. The carrier said amounts borrowed would bear interest at 5.8 percent per year, and that the new note replaces an existing note.
Verizon Wireless also signed a $2.4 billion floating rate promissory note payable to a subsidiary of Verizon that also is due Aug. 1, 2009. Amounts borrowed under the floating rate note bear interest at a yearly rate equal to one-month LIBOR plus 20 basis points for each interest period, and the new floating rate note replaces Verizon Wireless’ existing $2.4 billion note due in 2009.
In an unrelated announcement, Dobson Communications Corp. said it intends to offer $150 million principal amount of senior floating rate notes due 2012 and $150 million principal amount of senior convertible debentures due 2025. The carrier added that it also may issue up to an additional $30 million principal amount of senior convertible debentures upon exercise of an option to be granted to the initial purchasers.
Dobson said it plans to use net proceeds from the offerings, along with cash on hand, to redeem the entire $299 million outstanding aggregate principal amount of its 10.88-percent senior notes due 2010. Dobson’s stock was trading down 4 cents per share early Wednesday at $7.95 per share.
