Verizon Communications Inc. (NYSE: VZ) may raise all of this or none of it. The telecom giant filed its automatic shelf registration statement today with the SEC and the amount that the company can raise if it needs to or if it wants to is up to $10 billion.
As far as what the breakdown will be in stocks or bonds, it can be any combination of Common Stock, Preferred Stock, and Debt Securities. No underwriters have been named as is the case in most automatic shelf registration statements.
As far as the use of proceeds, Verizon noted in the filing, “Unless otherwise provided in the applicable prospectus supplement, we will use the net proceeds from the sale of the securities for repaying debt, making capital investments, funding working capital requirements or other general corporate purposes.”
Verizon still pays a lower dividend rate than rival AT&T INc. (NYSE: T) and some could even argue that this would be enough for a down-payment on the Vodafone Group plc (NYSE: VOD) stake in Verizon Wireless even though the companies have both said that they choose to leave that situation alone.
JON C. OGG
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