close
close
news

Verizon prepares $10 billion in debt for border acquisition

(Bloomberg) — Verizon Communications Inc. has provided $10 billion in short-term bank financing to fund the purchase of Frontier Communications Parent Inc. to help finance it, according to people familiar with the matter.

Most read from Bloomberg

Morgan Stanley is leading a group of banks in the committed financing known as a bridge loan, said the people, who asked not to be identified because the details are private. Verizon said last month that it aims to complete the acquisition in about 18 months if regulators and Frontier shareholders agree.

Bridge loans provided by banks for mergers and acquisitions are eventually being replaced by permanent financing, such as investment-grade bonds sold to institutional investors.

A Morgan Stanley representative declined to comment. Representatives for Verizon and Frontier did not respond to requests for comment.

Verizon last month agreed to acquire telecommunications company Frontier for about $9.59 billion to expand its high-speed internet business. Telecommunications companies like Verizon are investing in fiber to increase capacity for customers’ increasing data usage. The data flow is expected to increase further as more companies adopt artificial intelligence.

Most read from Bloomberg Businessweek

©2024 BloombergLP

Related Articles

Back to top button