Published on 5/22/2020 in the Prospect News Investment Grade Daily.
New Issue: AT&T prices $12.5 billion fixed-rate notes in five parts due 2027, 2031, 2041, 2051, 2060
By Devika Patel
Knoxville, Tenn., May 22 – AT&T Inc. priced $12.5 billion of global senior notes in five tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
AT&T sold $2.5 billion of 2.3% seven-year notes at a spread of Treasuries plus 35 basis points. These notes priced at 99.852.
A $3 billion tranche of 2.75% 11-year notes was sold with a Treasuries plus 40 bps spread. These notes priced at 99.839.
AT&T sold $2.5 billion of 3.5% 21-year notes at a spread of Treasuries plus 60 bps. These notes priced at 99.69.
A $3 billion tranche of 3.65% 31-year notes priced at a Treasuries plus 75 bps spread. These notes priced at 99.613.
Finally, there was $1.5 billion of 3.85% 40-year notes at a spread of Treasuries plus 80 bps. These notes priced at 99.574.
BofA Securities, Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., RBC Capital Market LLC and Wells Fargo Securities LLC are the active bookrunners.
BBVA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, ICBC Standard Bank plc, J.P. Morgan Securities LLC, MUFG, SG Americas Securities, LLC and TD Securities (USA) LLC are also bookrunners.
Proceeds will be used for the early redemption or repayment of the company’s $2,750,441,000 principal amount of 2.45% global notes due 2020, its $1.43 billion principal amount of 5.5% global notes due 2047, the $682,696,000 principal amount of 4.6% global notes due 2021 and the $1,694,999,000 principal amount of 2.8% global notes due 2021.
Additionally, proceeds will be used to repay or redeem the $5.5 billion outstanding amount under AT&T’s term loan credit agreement due Dec. 31 and the $400 million tranche A facility under AT&T’s term loan credit agreement also due Dec. 31.
AT&T is a Dallas-based telecommunications company.
| Issuer: | AT&T Inc.
|
| Amount: | $12.5 billion
|
| Securities: | Global senior notes
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., RBC Capital Market LLC and Wells Fargo Securities LLC (active); BBVA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, ICBC Standard Bank plc, J.P. Morgan Securities LLC, MUFG, SG Americas Securities, LLC and TD Securities (USA) LLC
|
| Senior co-managers: | Loop Capital Markets LLC and Scotia Capital (USA) Inc.; BNY Mellon Capital Markets, LLC, EA Markets Securities LLC, PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Academy Securities, Inc., C.L. King & Associates, Inc., CastleOak Securities, L.P., MFR Securities, Inc., Mischler Financial Group, Inc., Multi-Bank Securities, Inc., Samuel A. Ramirez & Company, Inc. and Siebert Williams Shank & Co., LLC
|
| Trade date: | May 21
|
| Settlement date: | May 28
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | June 1, 2027
|
| Coupon: | 2.3%
|
| Price: | 99.852
|
| Spread: | Treasuries plus 35 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until April 1, 2027, then a par call
|
|
|
| 11-year notes
|
| Amount: | $3 billion
|
| Maturity: | June 1, 2031
|
| Coupon: | 2.75%
|
| Price: | 99.839
|
| Spread: | Treasuries plus 40 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until March 1, 2031, then a par call
|
|
|
| 21-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | June 1, 2041
|
| Coupon: | 3.5%
|
| Price: | 99.69
|
| Spread: | Treasuries plus 60 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Dec. 1, 2040, then a par call
|
|
|
| 31-year notes
|
| Amount: | $3 billion
|
| Maturity: | June 1, 2051
|
| Coupon: | 3.65%
|
| Price: | 99.613
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Dec. 1, 2050, then a par call
|
|
|
| 40-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 1, 2060
|
| Coupon: | 3.85%
|
| Price: | 99.574
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole call at Treasuries plus 40 bps until Dec. 1, 2059, then a par call
|
|
|
© 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.
