Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Debt Investor Presentation (September 2013)
16 slides from Verizon Communications's debt investor presentation, September 2013
Slide 1: Acquisition of Vodafone's 45% Interest in Verizon Wireless
ACQUISITION OF VODAFONE’S 45% INTEREST IN VERIZON WIRELESS Fixed Income Investor Presentation September 2013
Slide 2: "Safe Harbor" Statement and Legends
“SAFE HARBOR” STATEMENT AND LEGENDS ADVERTISEMENT This communication is deemed an advertisement for the purposes of the U.K. prospectus rules and is not a prospectus or a prospectus equivalent document. Any decision to subscribe for, purchase, otherwise acquire, sell or otherwise dispose of any Veri
Slide 3: "Safe Harbor" Statement and Legends
“SAFE HARBOR” STATEMENT AND LEGENDS NO OFFER OR SOLICITATION This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval nor shall there be any offer or sale of securities in any jurisdiction in which such of
Slide 4: Strategic Benefits
STRATEGIC BENEFITS • Sole ownership drives strategic and financial benefits across entire business • Accretive to earnings per share at close of transaction • Access to all of wireless cash flows – Special distributions of $8.3B in 2012 and $3.15B YTD in 2013 • Favorable capital market environment •
Slide 5: Key Transaction Terms
KEY TRANSACTION TERMS • Aggregate value of $130 billion, primarily in cash and stock • Consideration structure – $58.9 billion of cash – $60.2 billion of common stock issued directly to Vodafone shareholders – $5.0 billion of notes with Vodafone – Sale of minority stake in Omnitel to Vodafone for $3
Slide 6: Financing Strategy
FINANCING STRATEGY • Strong balance sheet and financial flexibility today • Capacity to execute necessary debt financing • Incremental free cash flow more than covers funding costs • Maintaining solid investment grade credit ratings • Anticipate steadily de-levering and returning to pre-transaction
Slide 7: Financing and Liquidity
FINANCING AND LIQUIDITY Fully underwritten Financing Package • Fully executed Bridge Facility in place • Target taking out majority of Bridge Facility before deal closes Significant liquidity post transaction • $1.8B cash on hand as of June 30, 2013 • $6.2B revolver - $6.1B is available • Additional
Slide 8: Roadmap to Completion
ROADMAP TO COMPLETION • Access global capital markets • Reduce bridge financing as quickly as possible • Receive regulatory approvals • Receive shareholder approvals • Issue new shares and close transaction Expect transaction to close in 1Q 2014 8
Slide 9: Key Credit Highlights
KEY CREDIT HIGHLIGHTS • One of the world’s leading providers of communications, information and entertainment products and services – LTM revenue of $118B and adjusted EBITDA of $39B ending June 30, 2013 – Over 100M wireless retail connections – 5.0M FiOS subscribers – 4.8% growth in Enterprise stra
Slide 10: Transaction for the Best Wireless Asset in North America
TRANSACTION FOR THE BEST WIRELESS ASSET IN NORTH AMERICA 500+ ≈300M ≈95% LTE Markets POPs of the US Population The largest 4G LTE network in the country 10
Slide 11: Transaction Supports Growth Strategy
TRANSACTION SUPPORTS GROWTH STRATEGY WIRELESS • Execute on fundamentals • Transform & scale • Invest in future ONE VERIZON WIRELINE Consumer & Mass Markets Verizon Enterprise Solutions • FiOS penetration • Strategic platforms • Product differentiation • Vertical solutions • Operating efficiency • Op
Slide 12: One Verizon and Future Growth
ONE VERIZON AND FUTURE GROWTH • Full ownership of wireless enables advancement of One Verizon • Unique asset portfolio drives continued growth and value • Powerful growth opportunities with mobile • Ability to develop more integrated and valuable services for customers Value-creating transaction 12
Slide 13: Appendix
APPENDIX 7 al verizon
Slide 14: Commitment to Maintain Strong Investment Grade Ratings
COMMITMENT TO MAINTAIN STRONG INVESTMENT GRADE RATINGS Pro forma capitalization ($B) Status quo Pro forma Amount LTM EBITDA multiple Amount LTM EBITDA multiple Adjusted EBITDA (LTM ending June 30, 2013) $39.3 $39.3 Cash and cash equivalents $1.8 $1.8 Existing debt $49.8 1.3x $49.8 1.3x New debt 0.0
Slide 15: Current Maturity Profile
CURRENT MATURITY PROFILE Existing maturity profile ($M) 8,078 6,750 4,050 3,735 3,000 2,663 2,119 2,175 1,750 1,765 1,600 1,750 1,500 1,353 1,250 1,325 1,250 949 750 550 270 340 200 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35 '36 '37 '38 '39 '40 '41 '4
Slide 16: verizon
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