AT&T $850 mln mandatory exchangeables into CVC talked 6.5-7.0% yield, up 18-22%

By Ronda Fears

Nashville, Tenn., Oct. 9 - AT&T Corp. launched $850 million of mandatory exchangeables that convert into Cablevision Systems Corp. New York common stock on Tuesday with pricing guidance of 6.5% to 7.0% yield and an 18% to 20% initial conversion premium. The registered deal is set to price after the market close Wednesday, Oct. 17, via lead manager Bear Stearns.

The three-year mandatory exchangeable issue is being offered alongside a secondary offering of Cablevision NY shares by AT&T, which, together with the respective greenshoes, will essentially liquidate AT&T's stake in Cablevision NY.

Cablevision had planned convertible and common stock offerings, totaling $1 billion to $2 billion, prior to the Sept. 11 terrorist attacks on the U.S., but has since withdrawn those plans due to unfavorable market conditions.

Cablevision common shares closed Tuesday up 4 cents to $39.00. End

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