Term Sheet

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Will Verizon be the bond king?

September 11, 2013: 11:31 AM ET

Verizon launches largest corporate bond offering of all time.

130904091652-verizon-logo-620xaFORTUNE -- Verizon Communications (VZ) today formally launched a $49 billion bond sale to help finance its $130 billion acquisition of Vodafone's 45% stake in Verizon Wireless.  It would be the largest investment-grade corporate bond offering of all time, easily topping Apple's (AAPL) $17 billion issuance from this past spring:

Source: Thomson Reuters

Source: Thomson Reuters

Verizon's offering also could help turn around the entire corporate bond market's fortunes, which have sagged so far in 2013.

According to Thomson Reuters, investment-grade corporate bond offerings currently total $1.77 trillion in 2013. That's down 7% from the same period in 2012. If the Verizon deal gets added in, however, the gap shrinks to just 4.6%.

Moreover, Verizon would put U.S. issuance up 21% from this time last year (for the highest YTD total since 2008). It also would  increase the U.S. share of global issuance in 2013 from 28% to 30%.

J.P. Morgan Chase & Co. (JPM), one of Verizon's bankers, is currently atop the leaderboard for global corporate investment grade bonds with a 7% marketshare. Below is the entire list:

Source: Thomson Reuters

Source: Thomson Reuters

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Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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