Verizon may announce jumbo bond on Monday: sources

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The much anticipated jumbo $20 billion to $35 billion Verizon Communications bond issue could be announced as early as this afternoon, several market sources said on Monday.

It is believed the bookrunners Bank of America, Barclays, JP Morgan and Morgan Stanley are discussing the possibility of announcing the deal later today given its complexity and sheer size.

Talk is that the transaction has the potential to have 10 tranches, the sources said.

"The announcement sounds like it could get accelerated to this afternoon," said one investment grade syndicate manager away from the deal. "The world knows the trade is coming and meetings can still go on. They may as well get it out there and get investors involved."

(Read more: Banks set to launch Verizon's $20 billion bond roadshow)

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Bankers at the bookrunners refused to comment.

Syndicate desks were hearing the deal could include tranches of three-year fixed and floating rate securities, five-year fixed and floaters, as well as seven, 10, 20, 30, 50 and possibly even a 100 year portion.

The deal is expected to come with significant new issue concession relative to outstandings.

Talk last week was that the world's biggest investors were indicating their willingness to participate in a 10-year bond which bookrunners were airing around Treasurys plus 200 basis points. One investor said he had heard the 10-year bonds to carry a spread of high 100s to 200 basis points.

That compares with Verizon 2022s trading at around T 120 basis points (G 143 basis points) before acquisition news and about T 151 basis points or G 165 basis points this morning, from T 155 basis points (G 170 basis points) late last week.

By Reuters.