AT&T announces early tender results, further upsizes capped offers

Chicago, Aug. 10 – AT&T Inc. announced the results for its capped tender offers for three series of notes and further upsized the caps in order to accept the tendered notes, according to a news release Monday.

The offers were announced on July 27. There were concurrent any-and-all offers for 18 series of notes.

Details

The caps for the tender offers were linked to the amounts tendered in some of the any-and-all offers.

However, AT&T is now offering to purchase all of the notes validly tendered by the early tender and withdrawal deadline of 5 p.m. ET on Aug. 7.

Accordingly, for the $1.5 billion floating-rate global notes due July 2021 (Cusip: 00206RDV1) with a total tender consideration of $1,008.75 per $1,000 principal amount of notes, the company is accepting all $1,214,359,000 tendered. This amount is raised from a cap of $600 million. Previously, the cap was $1.5 billion minus the amount tendered for the June 2021 floating-rate notes.

For the $3.75 billion floating-rate global notes due 2024 (Cusip: 00206RGD8) with a total consideration of $1,020 per $1,000 principal amount of notes, the company will accept all $2,134,873,000 principal amount of notes validly tendered. The cap was set at $1.25 billion. The cap was previously $2 billion minus the aggregate principal amount tendered for all six series of 2024 notes above.

And, for the $5 billion 3.4% global notes due 2025 (Cusip: 00206RCN0) with a total hypothetical consideration of $1,116.36 based on the 0.25% Treasury due June 30, 2025 plus a fixed spread of 50 bps, the company will accept all $2,675,326,000 tendered. The cap was raised to $1 billion and was previously $1.5 billion minus the aggregate principal amount tendered for the five series of notes listed above with 2025 maturities.

The tender considerations for the capped tender offers include a $30 early tender consideration, payable to noteholders who tendered by the early deadline.

Pricing will occur at 11 a.m. ET on Aug. 10.

Early settlement is expected for Aug. 12.

The capped tender offers were set to expire at 11:59 p.m. ET on Aug. 21, but as the caps have been met no further notes will be accepted for purchase.

Dealer managers, agents

The offers were subject to a financing condition.

Deutsche Bank Securities Inc. (866 627-0391, 212 250-2955), Goldman Sachs & Co. LLC (212 902-6351, GS-LM-NYC@gs.com), J.P. Morgan Securities LLC (866 834-3666, 212 834-3424) and Morgan Stanley & Co. LLC (800 624-1808, 212 761-1057) are acting as the joint lead dealer managers for the tender offers.

Global Bondholder Services Corp. (866 470-3900, 212 430-3774, https://gbsc-usa.com/registration/att) is the tender agent and information agent.

AT&T is a Dallas-based communication and entertainment company.

© 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.