Verizon seeks $10 billion from bond sale to fund Frontier deal, Bloomberg News reports

Verizon Communications is looking to raise about $10 billion in the corporate bond market to fund its $20 billion deal for Frontier, Bloomberg News reported on Monday, citing a person familiar with the matter.

The wireless carrier filed for a five-part bond sale, earlier in the day, without disclosing a size. Initial price discussions for the longest portion of the deal, a 40-year bond, are about 1.6 per centage points above Treasuries, the report said.

Verizon did not immediately respond to a Reuters request for comment.

The company agreed to buy Frontier last year for about $9.6 billion and absorb $10 billion in Frontier debt. It is looking to close its deal for the fiber-optic internet provider early next year, after receiving regulatory approval in May upon agreeing to end its diversity programs.

The news follows Meta Platforms' biggest bond sale of up to $30 billion announced last month, as enterprises rush to fund costly artificial intelligence expansion plans.

Cloud infrastructure and software maker Oracle is also reportedly looking to raise $15 billion in bond sales.