By Andrea Heisinger
Omaha, Jan. 29 - AT&T Inc. priced $4 billion of notes (A2/A/A) in three tranches Tuesday, an informed source said.
The issue was increased from two tranches, the source said.
The company reopened its 4.95% five-year notes to add $750 million. They priced at 101.975 to yield Treasuries plus 163 basis points. There is a make-whole call at Treasuries plus 25 bps.
This tranche priced tighter than price talk, which was in the 165 bps area over Treasuries.
The total issuance is now $1.75 billion for the 4.95% notes, including $1 billion priced Dec. 3, 2007.
The company also priced $2.5 billion 5.5% 10-year notes at 99.78 to yield Treasuries plus 185 bps. They have a make-whole call at Treasuries plus 25 bps.
The tranche also priced tighter than talk, which was in the 187.5 bps area over Treasuries.
The third tranche was a reopening AT&T's 6.3% 30-year notes to add $750 million. The notes were priced at 97.713 to yield Treasuries plus 210 bps. The tranche has a make-whole call at Treasuries plus 30 bps.
There was no price talk for the 30-year tranche, as it "just kind of happened," according to a source close to the deal.
The total issuance for the 30-year notes is now $2.75 billion, including $2 billion priced Dec. 3, 2007.
Bookrunners were Banc of America Securities LLC, Citigroup Global Markets Inc. and Lehman Brothers Inc.
The telecommunications company is based in San Antonio.
| Issuer: | AT&T Inc.
|
| Issue: | Notes
|
| Total amount: | $4 billion
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., Lehman Brothers Inc.
|
| Trade date: | Jan. 29
|
| Settlement date: | Feb. 1
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Five-year tranche
|
| Amount: | $750 million reopened
|
| Maturity: | Jan. 15, 2013
|
| Coupon: | 4.95%
|
| Price: | 101.975
|
| Spread: | Treasuries plus 163 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps
|
| Price talk: | 165 bps area
|
| Total issuance: | $1.75 billion, including $1 billion priced Dec. 3, 2007
|
|
|
| 10-year tranche
|
| Amount: | $2.5 billion
|
| Maturity: | Feb. 1, 2018
|
| Coupon: | 5.5%
|
| Price: | 99.78
|
| Spread: | Treasuries plus 185 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 187.5 bps area
|
|
|
| 30-year tranche
|
| Amount: | $750 million reopened
|
| Maturity: | Jan. 15, 2038
|
| Coupon: | 6.3%
|
| Price: | 97.713
|
| Spread: | Treasuries plus 210 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Total issuance: | $2.75 billion, including $2 billion priced Dec. 3, 2007
|
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