Verizon Hybrids Draw Heavy Bids While Spreads at Record Lows (2)

Investors piled into Verizon Communications Inc.’s euro and sterling hybrid bonds even as the extra yield on offer for the subordinated debt hovers near record lows.

The US telecom operator raised €2.25 billion ($2.66 billion) at a yield of 4.25% from its euro offering and £600 million ($813 million) at 5.75% from the sterling, according to a person familiar with the matter who asked not to be identified. The tranches attracted €5.1 billion and £2.2 billion of investor bids respectively.

The sale lands as the extra yield investors demand to hold euro subordinated corporate debt instead of senior bonds ...