Verizon’s $265 Million in Fees for Record Bond Sale Top Average
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Verizon Communications Inc. paid banks including JPMorgan Chase & Co. and Morgan Stanley $265.3 million in fees to underwrite the second-biggest U.S. telephone carrier’s record $49 billion bond sale yesterday.
The fees amount to 0.541 percent of the funds raised, exceeding the average 0.486 percent paid on offerings of investment-grade U.S. corporate bonds this year, data compiled by Bloomberg show. The four leading underwriters, also including Barclays Plc and Bank of America Corp., each underwrote 15.7 percent of the sale, according to a regulatory filing, and would get $41.6 million apiece if commissions are divided in proportion to firms’ involvement.