By Susanna Moon
Chicago, Nov. 20 - AT&T Inc. said it lifted the maximum tender amount in the offers to purchase nine series of notes to $3,285,117,000 and eliminated the tender cap for the 5.2% notes due 2016 and 5.625% global notes due 2016.
The company said on Nov. 19 that it priced the tender offer for up to $2,285,117,000 of nine series of notes, with the details set out in the table below.
Before the change to the offers, the maximum amount was set at $4 billion less the amount of the notes tendered and accepted for purchase in the any and all offers for 15 series of notes and debentures, which expired at 5 p.m. ET on Nov. 13.
Also, there was originally a sub-cap of $500 million for the 5.2% notes and 5.625% notes due 2016.
As of 5 p.m. ET on Nov. 19, the early tender date, investors had tendered $3,475,117,000 principal amount of notes, and the company expects to purchase all of the tendered notes.
Tendered notes may no longer be withdrawn, as of the early tender deadline.
The maximum tender offers will end at 11:59 p.m. ET on Dec. 4.
The total purchase price included an early tender premium of $30 for each $1,000 principal amount of notes tendered by the early tender deadline.
Holders will also receive accrued interest up to but excluding the payment date of Dec. 5.
The breakdown for the tendered notes in the maximum offer are listed in order of priority acceptance level:
• $100,708,000, or 25.18%, of BellSouth's $400 million of 5.2% notes due 2016;
• $400,525,000, or 32.04%, of AT&T Inc.'s $1.25 billion of 5.625% global notes due 2016;
• $826,712,000, or 41.73%, of AT&T Inc.'s $1,981,282,000 of 6.5% global notes due 2037;
• $931,512,000, or 33.87%, of AT&T Inc.'s $2.75 billion of 6.3% global notes due 2038;
• $811,701,000, or 36.08%, of AT&T Inc.'s $2.25 billion of 6.55% global notes due 2039;
• $84,854,000, or 17.27%, of AT&T Inc.'s $491,219,000 of 6.45% global notes due 2034;
• $131,845,000, or 29.59%, of AT&T Inc.'s $445.62 million of 6.4% global notes due 2038;
• $93,807,000, or 16.00%, of AT&T Inc.'s $586,254,000 of 6.15% global notes due 2034; and
• $93,453,000, or 14.95%, of Pacific Bell Telephone Co.'s $625 million of 7.125% debentures due 2026.
Any and all offer
In the any and all offer, the total purchase price per $1,000 principal amount of notes is noted in the table below. Pricing was set at 2 p.m. ET on Nov. 13 using a fixed spread over the bid-side price of a reference Treasury security.
As previously reported, AT&T offered to purchase any and all of the following notes:
• BellSouth Corp.'s 7.12% debentures due 2097;
• BellSouth Telecommunications, LLC's 7% debentures due 2095;
• BellSouth Telecommunications' 6.65% zero-to-full debentures due 2095;
• BellSouth's 7.875% debentures due 2030;
• BellSouth's 6.875% notes due 2031;
• BellSouth's 6.55% notes due 2034;
• Ameritech Capital Funding Corp.'s 6.875% debentures due 2027;
• Ameritech Capital Funding's 6.55% debentures due 2028;
• Indiana Bell Telephone Co., Inc.'s 7.3% debentures due 2026;
• BellSouth Telecommunications' 7% debentures due 2025;
• BellSouth's 6% notes due 2034;
• BellSouth Telecommunications' 6.375% debentures due 2028;
• AT&T Inc.'s 6.8% notes due 2036;
• New Cingular Wireless Services, Inc.'s 8.75% senior notes due 2031; and
• AT&T Corp.'s 6.5% notes due 2029.
Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) are the lead dealer managers. The tender and information agent is Global Bondholder Services Corp. (866 873-7700 or 212 430-3774).
AT&T is a telecommunications company based in Dallas.
AT&T any and all tender offers prices
| Debentures | Amount outstanding | Fixed spread | Total payment
|
| 7.12% debentures due 2097 | $293,144,000 | 245 bps | $1,126.83
|
| 7% debentures due 2095 | $240,899,000 | 245 bps | $1,107.94
|
| 6.65% zero-to-full debentures due 2095 | $268,962,000 | 245 bps | $924.80
|
| 7.875% debentures due 2030 | $690.22 million | 195 bps | $1,214.69
|
| 6.875% notes due 2031 | $505,451,000 | 185 bps | $1,129.08
|
| 6.55% notes due 2034 | $510,459,000 | 190 bps | $1,093.97
|
| 6.875% debentures due 2027 | $200 million | 255 bps | $1,156.31
|
| 6.55% debentures due 2028 | $400 million | 255 bps | $1,126.03
|
| 7.3% debentures due 2026 | $150 million | 255 bps | $1,186.15
|
| 7% debentures due 2025 | $300 million | 235 bps | $1,170.10
|
| 6% notes due 2034 | $528,871,000 | 185 bps | $1,034.72
|
| 6.375% debentures due 2028 | $500 million | 245 bps | $1,121.57
|
| 6.8% notes due 2036 | $267.87 million | 180 bps | $1,143.49
|
| 8.75% senior notes due 2031 | $896,496,000 | 130 bps | $1,406.80
|
| 6.5% notes due 2029 | $263,472,000 | 140 bps | $1,128.87
|
|
|
| Maximum tender offers
|
| Notes | Reference yield | Reference yield | Fixed spread | Total payment
|
| 5.2% notes | 0.625% Treasury note due Oct. 15, 2016 | 0.554% | 55 bps | $1,121.63
|
| 5.625% notes | 0.625% Treasury note due Oct. 15, 2016 | 0.554% | 35 bps | $1,117.72
|
| 6.5% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 185 bps | $1,103.69
|
| 6.3% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 185 bps | $1,078.45
|
| 6.55% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 185 bps | $1,113.26
|
| 6.45% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 160 bps | $1,123.02
|
| 6.4% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 180 bps | $1,099.12
|
| 6.15% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 160 bps | $1,086.71
|
| 7.125% notes | 2.5% d Treasury note due Aug. 15, 2023 | 2.691% | 200 bps | $1,225.13
|
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