Verizon Communications will redeem a series of debt notes on December 16, 2025. The company will retire 1.450 % notes due March 20, 2026 for $825,833,000, 4.125 % notes due March 16, 2027 for $606,992,000 of $2,356,992,000 outstanding, and 3.000 % notes due March 22, 2027 for $463,008,000. The redemption price for each series will be the greater of 100 % of the principal or the present value of remaining principal and interest payments discounted at the Treasury rate plus 15, 25, or 35 basis points, respectively, with accrued and unpaid interest added.
Verizon’s net unsecured debt stood at $112 billion at the end of Q3 2025, a $9.4 billion year‑over‑year decline from $121.4 billion. The redemption will further reduce debt and improve the company’s net unsecured debt to adjusted EBITDA ratio, which is currently 2.2×. The move is part of Verizon’s strategy to keep leverage within a target range of 2.0× to 2.25× as it prepares for the pending Frontier Communications acquisition, which is valued at $20 billion and is expected to close in the first quarter of 2026. The acquisition is projected to increase leverage by approximately 0.25×, but Verizon aims to remain within its target range before the deal closes.
Verizon’s Q3 2025 results showed total operating revenue of $33.8 billion, up 1.5 % year‑over‑year, and diluted earnings per share of $1.17, compared with $0.78 in Q3 2024. Free cash flow for the first nine months of 2025 reached $15.8 billion, up from the prior year. The company is also investing heavily in fiber‑optic infrastructure and artificial‑intelligence workloads, including a partnership with AWS to build AI‑ready fiber pathways. Verizon’s leverage ratio of 2.2× is lower than that of AT&T (2.59×) and T‑Mobile (2.5×), positioning it favorably in the competitive telecommunications market.
The debt‑redemption program will reduce Verizon’s interest expense and strengthen its balance sheet, providing additional financial flexibility to support the Frontier acquisition and ongoing network expansion initiatives. By lowering debt levels, Verizon enhances its capacity to invest in high‑growth areas while maintaining a disciplined capital‑allocation framework.
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