Long-time client relationships between JPMorgan Chase and Morgan Stanley with Verizon Communications are expected to pay off this week, when the company announces a $130 billion deal to buy out Vodafone's 45 percent stake in its wireless joint venture.
As part of the deal, the two banks—which took lead advisory roles for the buyer—are underwriting a more than $60 billion bridge loan, the largest-ever for a corporate issuer, according to people familiar with the matter. Bank of America and Barclays also have underwriting roles, and bonds are expected to be issued to cover the bridge loan "very quickly," these people said.
(Exact terms of the bridge loan could not be learned, but are expected to be favorable for competitive, investment-grade loan.)
(Read more: Vodafone investors split on best use of windfall)
The deal is set to be announced as soon as Monday midday. According to Reuters, the Verizon board will meet first thing Monday morning to vote on the deal. Vodafone issued a statement Sunday saying, "There is no certainty that an agreement will be reached," and that "a further announcement will be made as soon as practicable."