Verizon Communications (VZ)

Interest Rate and Fees

The loans under the Credit Agreement will bear interest at a rate equal to, at the option of Verizon Wireless, (i) the base rate (defined as the greater of the rate Bank of America announces publicly as its “prime rate” or the federal funds rate plus 0.50%, subject to a floor of LIBOR plus 1.00%) or (ii) LIBOR, in each case plus a margin to be determined by reference to credit ratings of Verizon Wireless or its unsecured debt issued by Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc. Initially, borrowings under the Credit Agreement bear interest at a rate equal to the base rate plus 2.00% or LIBOR plus 3.00%. The interest rate on the loans increases in increments of 0.50% on dates specified in the Credit Agreement.

Verizon Wireless will pay duration fees based on the outstanding principal amount of the loans in amounts and on dates specified in the Credit Agreement. In addition, if the borrowing has not occurred on or prior to January 26, 2009, Verizon Wireless will pay a commitment fee on the daily average unused commitment of each lender for the period from and including January 26, 2009 through the last day of the Availability Period. This fee accrues at a rate equal to 0.250% per annum on or prior to April 30, 2009 and 0.375% per annum thereafter.

Interest Rate and Fees

Borrowings under the Credit Agreement bear interest at a rate equal to, at the option of Verizon Wireless, (i) the base rate (defined as the greater of the rate published in The Wall Street Journal as the “prime lending rate” or the federal funds rate plus 0.50%) or (ii) LIBOR, in each case plus a margin to be determined by reference to the long-term credit rating of Verizon Wireless issued by Standard & Poor’s Ratings Services. Initially, borrowings under the Credit Agreement bear interest at a rate equal to the base rate plus 0.00% or LIBOR plus 0.75%. The interest rate on the loans increases 0.25% if the aggregate principal amount of the loans outstanding on the date that is six months following the Effective Date (as defined in the Credit Agreement) exceeds $1,887,500,000. In addition, Verizon Wireless will pay a commitment fee on the unused portion of the delayed draw facility at a rate to be determined by reference to the long-term credit rating of Verizon Wireless issued by Standard & Poor’s Ratings Services. Initially, the commitment fee on the unused portion of the delayed draw facility is 0.080%.