Verizon Communications Inc. is said to be seeking $60 billion from banks for a buyout of a stake in its wireless unit as borrowing costs for investment-grade companies climb from historic lows.
The average yield investors demand to hold the debt of companies with A credit grades in the U.S. is 3.08 percent, after falling to a record 2.3 percent in May, according to Bank of America Merrill Lynch’s Single-A US Corporate index, which counts Verizon among its members. The average climbed as high as 9.6 percent in 2008.
The company is in advanced discussions about an acquisition of Vodafone Plc’s 45 percent stake in Verizon Wireless for about $130 billion, according to people with knowledge of the matter. The New York-based company is negotiating with several banks to raise nearly half that amount, said two of the people, who asked not to be named because the talks are private.
The average loan interest margin that banks charge U.S. companies with A ratings fell as low as 92 basis points more than the London interbank offered rate at the start of this year from 102.6 at the end of 2011, data compiled by Bloomberg show.
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