They also could be looking to cram part of this debt back on VZ in some sort of negotiated deal to help de-leverage the co. This could be based on several factors - one being Verizon's desire to maintain a quality reputation and to avoid a lot of negative press. Plus a possible legal question on the amount piled on to IAR balance sheet.
If Merrill was not part of the spin from VZ, it would help explain their selection.
Also they may be courting private equities to act on the co's behalf in exchange for preferred positions and or rights/options and some CASH. Could explain the draw down on the LOC revolver. Debt equity swaps on extremely favorable terms. Take it private??? Who knows but these firms were brought in for specific reason which are not disclosed at this time.