Cellco Partnership/Verizon Wireless Capital is offering $4 billion in the investment-grade corporate bond market Friday, according to a person familiar with the deal.

The deal comes just a day after highly rated companies sold $16 billion in new bonds, as borrowers jostle to capitalize on renewed investor confidence.

The $3.5 billion five-year note was launched at a spread, or risk premium, of 390 basis points over Treasurys, market participants said. The $500 million three-year note was launched at 405 basis points over Treasurys. These spreads are at the tighter end of the expected range, which indicates demand since investors are willing to accept less.

Proceeds of the Cellco Partnership/Verizon Wireless' bonds will be used to repay a portion of the money the company borrowed in June to support its acquisition of regional telecoms group, Alltel (AT) from private-equity firm TPG and Goldman Sachs Group Inc. (GS), according to the person.

For comparison, fellow telecommunications company AT&T Inc. (T) sold $5.5 billion of bonds in three parts Thursday. One tranche of the deal was a $1 billion 4.85% bond due 2014. That priced at a discount to par value at 99.994 to give a 4.851% yield and a spread of 300 basis points over Treasurys.

Citigroup, Morgan Stanley and Royal Bank Of Scotland are joint lead managers on Cellco Partnership/Verizon Wireless' bond deal. They were also part of the seven-strong bank group that sold about $2.4 billion of bonds to investors in Europe for the company in December.

Cellco Partnership is a Delaware general partnership doing business as Verizon Wireless. Verizon Communications Inc. (VZ) owns 55% of the partnership, while the U.K.'s Vodafone Group PLC (VOD.LN) owns 45%, according to Fitch Ratings.

- By Kate Haywood, Dow Jones Newswires; 201-938-2348; kate.haywood@dowjones.com

(Romy Varghese contributed to this report.)

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