NEW YORK -- Verizon Communications Inc. (NYSE:VZ) today announced that it is offering to repurchase MCI, Inc. $1.983 billion aggregate principal amount of 5.908% Senior Notes Due 2007 at 101% of their par value.
For those noteholders who choose not to accept this offer, Verizon expects to satisfy and discharge the indenture governing this series of notes shortly after the close of the offer.
On Jan. 17, Verizon announced a similar offer on the two other series of MCI senior notes, and also announced that it had elected to redeem those notes. Verizon intends to complete the refinancing of all three series of MCI's long-term debt by the end of the first quarter using a combination of cash and other capital sources.
NOTE: This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: materially adverse changes in economic and industry conditions and labor matters, including workforce levels and labor negotiations, and any resulting financial and/or operational impact, in the markets served by us or by companies in which we have substantial investments; material changes in available technology; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations; the final results of federal and state regulatory proceedings concerning our provision of retail and wholesale services and judicial review of those results; the effects of competition in our markets; the timing, scope and financial impacts of our deployment of fiber-to-the-premises broadband technology; the ability of Verizon Wireless to continue to obtain sufficient spectrum resources; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and the extent and timing of our ability to obtain revenue enhancements and cost savings following our business combination with MCI, Inc.