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Update: Verizon Raises $15.5 Billion Through The Monetization Of Assets

Verizon Communications (VZ) recently participated in the AWS-3 spectrum auction. In the auction, VZ managed to win 181 licenses which cover around 192 million PoPs. It also includes some key metropolitan areas as well. However, the company ended up spending $10.4 billion to win these licenses. The total free cash flows for the last year were $13.4 billion. Out of this, the company paid $7.8 billion in the form of dividends which means that the remaining free cash flows are not sufficient to cover the cost of spectrum auction. The company could not take additional debt because its total debt has reached $113.3 billion, which has elevated its net debt to adjusted EBITDA multiple to 2.4x. Management reaffirmed in the last quarter's earnings call that it is committed to regain an A rating by the year 2017 or 2018.

It was expected that VZ will monetize its assets as mentioned… Read More …