| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for AT&T Inc. > News item |
AT&T determines payments in exchange offer for 8.75% notes, 8% notes
By Angela McDaniels
Tacoma, Wash., Aug. 17 - AT&T Inc. announced the pricing terms of its private exchange offer for the 8.75% senior notes due 2031 issued by New Cingular Wireless Services, Inc. and the 8% senior notes due 2031 issued by AT&T Corp.
The company will accept for exchange any and all 8.75% notes tendered and a principal amount of 8% notes equal to $2.5 billion minus the principal amount of 8.75% notes exchanged.
For each $1,000 principal amount, the total exchange price is $1,231.77 principal amount of new notes and $229.22 in cash for the 8.75% notes and $1,185.83 principal amount of new notes plus $183.38 in cash for the 8% notes.
The new notes will be issued by AT&T with a coupon of 5.35% and will mature in 2040. The new issue price will be $997.93, and the yield will be 5.364%. This was determined by reference to the bid-side yield on the designated benchmark security as of the pricing time, which was 3.764%.
The payments total $1,458.44 per 8.75% note and $1,366.75 per 8% note and use an exchange offer yield of 5.114% for the 8.75% notes and 5.139% for the 8% notes.
Holders who tender after 5 p.m. ET on Aug. 17, the early participation date, will receive the total exchange prices noted above minus the early participation payment of $30.00 per $1,000 principal amount of notes.
The company will also pay accrued interest up to but excluding the settlement date.
The offer will end at 11:59 p.m. ET on Aug. 31.
The exchange offer is conditioned on the receipt of tenders for at least $500 million principal amount of notes.
The exchange offer is being made to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and non-U.S. residents under Regulation S of the Securities Act.
Global Bondholder Services Corp. (866 387-1500 or 212 925-1630) is the information agent.
AT&T is a phone and internet 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.