PIMCO, BlackRock (BLK) Take Lion's Share of Record Corp. Bond Offering (VZ)
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With Verizon Communications (NYSE: VZ) selling $49 billion of bonds recently, which was largest corporate debt offering on record, some are asking: who were the biggest buyers?
The WSJ said today that Bill Gross' Pacific Investment Management Co. (PIMCO) and massive investment fund BlackRock (NYSE: BX) combined for purchases of about one-quarter of the total offering, roughly $13 billion in all. PIMCO scooped up about $8 billion, while BlackRock invested in $5 billion.
BlackRock and PIMCO now own about 10 percent of Verizon's total debt following the recent offering.
Purchases came as Verizon was initially looking to sell the $49 billion of debt in chunks over a period of time and was surprised by the robust demand. According to earlier reports, the offering saw about $90 billion of bids come in, causing the company to increase the size of the offering.
Verizon will also look to market a $12 billion loan to complete a financing package which is expected to top $60 billion.
Investment firms Barclays PLC, J.P. Morgan Chase, Bank of America, and Morgan Stanley each earned $41 million for their role in the process.
Verizon is indicated for a higher open Friday.
The WSJ said today that Bill Gross' Pacific Investment Management Co. (PIMCO) and massive investment fund BlackRock (NYSE: BX) combined for purchases of about one-quarter of the total offering, roughly $13 billion in all. PIMCO scooped up about $8 billion, while BlackRock invested in $5 billion.
BlackRock and PIMCO now own about 10 percent of Verizon's total debt following the recent offering.
Purchases came as Verizon was initially looking to sell the $49 billion of debt in chunks over a period of time and was surprised by the robust demand. According to earlier reports, the offering saw about $90 billion of bids come in, causing the company to increase the size of the offering.
Verizon will also look to market a $12 billion loan to complete a financing package which is expected to top $60 billion.
Investment firms Barclays PLC, J.P. Morgan Chase, Bank of America, and Morgan Stanley each earned $41 million for their role in the process.
Verizon is indicated for a higher open Friday.
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