AT&T enters into $14.7 billion term loan credit agreement

By Taylor Fox

New York, Feb. 1 – AT&T Inc. entered into a $14.7 billion term loan credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

The term loan is available for a single draw at any time before May 29.

The proceeds of the term loan will be used for general corporate purposes, which may include among other things, financing acquisitions of additional spectrum.

Borrowings will bear interest at Libor plus 62.5 basis points to 112.5 bps, depending on the company’s senior unsecured long-term debt ratings, subject to a 0% floor.

A commitment fee on unused borrowings will range from 7 bps to 12.5 bps, also dependent on ratings, starting March 30.

The loan contains certain representations and warranties and covenants, including a limitation on liens covenant and, beginning in the first full fiscal quarter ending after the closing, a net debt-to-EBITDA financial ratio covenant that the company will maintain, as of the last day of each fiscal quarter.

Bank of America, NA is the agent.

BofA Securities, Inc. is also global coordinator, joint bookrunners and joint lead arranger.

Citibank, NA is the syndication agent, a joint bookrunner and joint lead arranger.

Barclays, Deutsche Bank Securities Inc., JPMorgan Chase Bank, NA, Mizuho Bank, Ltd. and Wells Fargo Securities, LLC also worked as joint lead arrangers and joint bookrunners.

AT&T is a telecommunications services provider based in Dallas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.