AT&T enters into $3.55 billion four-year term loan credit agreement

By Sarah Lizee

Olympia, Wash., Nov. 21 – AT&T Inc. entered into a $3.55 billion four-year term loan credit agreement on Tuesday with Bank of America, NA as agent, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings will bear interest at Libor plus a spread ranging from 87.5 basis points to 112.5 bps, depending on public debt ratings. Based on the company’s current ratings, interest is Libor plus 100 bps.

Repayment of all advances will be subject to amortization starting two years and nine months after the date on which those advances are made, with 25% of the total principal amount thereof being payable prior to the date that is four years and six months after the date on which such advances are made.

Beginning in the first full fiscal quarter ending after the closing date, the company is required to maintain a net debt to EBITDA financial ratio of not more than 3.5 to 1.

The company used the proceeds of the new term loan to finance the repayment in part of loans outstanding under its term loan credit agreement dated as of Nov. 15, 2016 with JPMorgan Chase Bank, NA as administrative agent.

Merrill Lynch, Pierce, Fenner & Smith Inc. is the lead arranger and bookrunner. Wells Fargo Bank, NA is the syndication agent. Banco Bilbao Vizcaya Argentaria, SA New York Branch, BNP Paribas, JPMorgan Chase Bank, Mizuho Bank, Ltd., PNC Bank, NA, Royal Bank of Canada and MUFG Bank, Ltd. are documentation agents.

AT&T is a Dallas-based telecommunications company.

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