AT&T announces pricing for exchange offers for 13 notes in two pools

By Cady Vishniac

Detroit, Dec. 2 – AT&T Inc. has announced the pricing for its exchange offers for 13 notes in two pools via a company press release.

As previously reported, the company plans to accept all notes validly tendered by the early exchange deadline, raising its initial cap in order to do so.

The company began private exchange offers for the notes on Nov. 17. The early results of the exchange offers were announced Dec. 2.

Under pool 1, the company is offering a new series of senior notes due 2057 in exchange for four series of outstanding notes. In pool 2, the company is offering a new series of senior notes due 2033 and cash in exchange for nine series of outstanding notes.

The early deadline was 5 p.m. ET on Dec. 1. Pricing occurred at 11 a.m. ET on Dec. 2.

The exchange offers will expire at 11:59 p.m. ET on Dec. 15.

Early settlement is expected on Dec. 7 and final settlement on Dec. 17.

Pool 1 pricing

The pricing of pool 1 notes is as follows:

• $1,142,898,000 of AT&T’s $1,749,900,000 outstanding 4.8% global notes due 2044 (Cusip: 00206RCG5) at $1,222.81 in new 2057 notes per $1,000 principal amount, with pricing based on the 1.375% Treasury note due Aug. 15, 2050 plus 170 basis points;

• $2,441,951,000 of AT&T’s $4,176,400,000 outstanding 4.5% global notes due 2048 (Cusips: 00206RDL3, 00206RDJ8) at $1,173.10 in new 2057 notes per $1,000 principal amount, with pricing based on the 1.375% Treasury note due Aug. 15, 2050 plus 180 bps;

• $780,865,000 of AT&T’s $1,896,100,000 outstanding 4.35% global notes due 2045 (Cusip: 00206RBK7) at $1,155.53 in new 2057 notes per $1,000 principal amount, with pricing based on the 1.375% Treasury note due Aug. 15, 2050 plus 170 bps; and

• $659,355,000 of AT&T’s $1,956,149,000 outstanding 4.3% global notes due 2042 (Cusips: 00206RBH4, 00206RBG6) at $1,153.74 in new 2057 notes per $1,000 principal amount, with pricing based on the 1.375% Treasury note due Aug. 15, 2050 plus 160 bps.

In each case, there will be an early participation payment. The pool 1 payment is equal to $50 principal amount of new notes.

Pool 2 pricing

The pricing of pool 2 notes is as follows:

• $4,441,000 of Pacific Bell Telephone Co.’s $222,957,000 outstanding of 7.125% debentures due March 15, 2026 (Cusip: 694032AT0) at $1,000.33 in new 2033 notes and $300.49 cash per $1,000 principal amount, with pricing based on the 0.25% Treasury note due Oct. 31, 2025 plus 80 bps and 100% of the premium to be paid in cash;

• $838,595,000 of AT&T’s $2.65 billion outstanding 4.125% global notes due 2026 (Cusip: 00206RCT7) at $1,157.47 in new 2033 notes per $1,000 principal amount, with pricing based on the 0.25% Treasury note due Oct. 31, 2025 plus 45 bps and 0% of the premium to be paid in cash;

• $238,855,000 of AT&T’s $541,141,000 outstanding of 3.875% global notes due 2026 (Cusip: 00206RHT2) at $1,142.85 in new 2033 notes per $1,000 principal amount, with pricing based on the 0.25% Treasury note due Oct. 31, 2025 plus 45 bps and 0% of the premium to be paid in cash;

• $346,897,000 of AT&T’s $707,258,000 outstanding 2.95% global notes due 2026 (Cusip: 00206RHV7) at $1,106.11 in new 2033 notes per $1,000 principal amount, with pricing based on the 0.25% Treasury note due Oct. 31, 2025 plus 50 bps and 0% of the premium to be paid in cash;

• $9,121,000 of Ameritech Capital Funding Corp.’s $100,248,000 outstanding 6.55% debentures due Jan. 15, 2028 (Cusip: 030955AN8) at $1,142.23 in new 2033 notes and $173.38 cash per $1,000 principal amount, with pricing based on the 0.875% Treasury note due Nov. 15, 2050 plus 85 bps and 55% of the premium to be paid in cash;

• $20,137,000 of BellSouth Telecommunications, LLC’s $197,191,000 outstanding 6.375% debentures due June 1, 2038 (Cusip: 079867AW7) at $1,189.16 in new 2033 notes and $125.85 cash per $1,000 principal amount, with pricing based on the 0.875% Treasury note due Nov. 15, 2050 plus 90 bps and 40% of the premium to be paid in cash;

• $716,642,000 of AT&T’s $2,449,011,000 outstanding 4.1% global notes due 2028 (Cusips: 00206RGL0, 00206RER9) at $1,174.51 in new 2033 notes per $1,000 principal amount, with pricing based on the 0.25% Treasury note due Nov. 15, 2050 plus 50 bps and 0% of the premium to be paid in cash;

• $510,049,000 of AT&T’s $2 billion outstanding 4.25% global notes due 2027 (Cusip: 00206RDQ2) at $1,169.49 in new 2033 notes per $1,000 principal amount, with pricing based on the 0.25% Treasury note due Nov. 15, 2050 plus 35 bps and 0% of the premium to be paid in cash; and

• $570,241,000 of AT&T’s $1,329,194,000 outstanding 3.8% global notes due 2027 (Cusip: 00206RHW5) at $1,142.64 in new 2033 notes per $1,000 principal amount, with pricing based on the 0.25% Treasury note due Nov. 15, 2050 plus 35 bps and 0% of the premium to be paid in cash.

In each case, there will be an early participation payment. The pool 2 payment is equal to $50 principal amount of new notes.

Details

The cash payment percent of the premium is the percent of the amount by which the total consideration exceeds $1,000 in principal amount and cash per $1,000 principal amount of old notes.

Holders will receive accrued interest in cash.

The exchange agent and information agent is Global Bondholders Services Corp. (866 470-3900, 212 430-3774, contact@gbsc-usa.com).

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.