Sept. 11 (Bloomberg) -- Verizon Communications Inc., the telephone company seeking $14 billion in loans to back its purchase of a stake in its wireless unit from Vodafone Group Plc, set the fees it will pay to banks signing on to the financing.
Lenders committing $125 million or more will receive 35 basis points, 30 basis points for pledges less than that amount, according to a person with knowledge of the deal, who wasn’t authorized to speak publicly and asked not to be identified. The fees will be calculated based on the final amount the banks lend to Verizon upon closing of the transaction.
Verizon is seeking a $6 billion term loan due in three years that will pay interest at 1.375 percentage points more than the London interbank offered rate, and a five-year loan of similar size with a rate of 1.5 percentage points more than Libor, according to data compiled by Bloomberg.
The financing is being arranged JPMorgan Chase & Co., Morgan Stanley, Bank of America Corp. and Barclays Plc, and it also includes a $2 billion revolving credit line that will pay interest at 1.25 percentage points more than the benchmark borrowing rate. The banks met with lenders today to discuss the deal.
The loans, along with an unprecedented $49 billion bond sale, back the buyout of partner Vodafone percent stake in Verizon Wirless. A basis point is 0.01 percentage point.
To contact the editor responsible for this story: Faris Khan at firstname.lastname@example.org