By Sheri Kasprzak and Angela McDaniels
New York, April 23 – AT&T Inc. sold $17.5 billion of notes (/BBB+/A-) in six tranches, said a market source.
The offering included $3 billion of 2.45% five-year notes that priced at Treasuries plus 110 basis points. Pricing came tight of initial price talk in the Treasuries plus 140 bps area that later tightened to the Treasuries plus 115 bps area plus or minus 5 bps.
The issuer priced $750 million of five-year floating-rate notes at Libor plus 93 bps. This tranche was talked at the Libor equivalent.
The deal included $2.75 billion of 3% seven-year notes that priced at Treasuries plus 130 bps, tight of initial talk in the Treasuries plus 155 bps area that later tightened to the Treasuries plus 135 bps area.
Next came $5 billion of 3.4% 10-year notes that priced at Treasuries plus 150 bps, compared with talk in the area of 170 bps over Treasuries, later tightening to the area of Treasures plus 155 bps.
Included in the deal were $2.5 billion of 4.5% 20-year notes at Treasuries plus 190 bps. Talk was the Treasuries plus 220 bps area. Later guidance was in the area of 195 bps over Treasuries.
Finally, the company priced $3.5 billion of 4.75% 31-year notes at Treasuries plus 215 bps. This tranche was talked in the Treasuries plus 240 bps area before tightening to the Treasuries plus 220 bps area.
The joint bookrunners for the deal were BofA Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.
Proceeds will be used for general corporate purposes, including funding the cash consideration for the company’s acquisition of DirecTV.
The telecommunications company is based in Dallas.
| Issuer: | AT&T Inc.
|
| Issue: | Notes
|
| Amount: | $17.5 billion
|
| Pricing date: | April 23
|
| Ratings: | Standard & Poor’s: BBB+
|
| Fitch: A-
|
|
|
| Five-year floating-rate notes
|
| Amount: | $750 million
|
| Maturity: | June 30, 2020
|
| Coupon: | Libor plus 93 bps
|
| Talk: | Libor equivalent of Treasuries plus 140 bps area, tightened to Libor equivalent of Treasuries plus 115 bps area plus or minus 5 bps
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $3 billion
|
| Maturity: | June 30, 2020
|
| Coupon: | 2.45%
|
| Spread: | Treasuries plus 110 bps
|
| Talk: | Treasuries plus 140 bps area, tightened to Treasuries plus 115 bps area plus or minus 5 bps
|
|
|
| Seven-year notes
|
| Amount: | $2.75 billion
|
| Maturity: | June 30, 2022
|
| Coupon: | 3%
|
| Spread: | Treasuries plus 130 bps
|
| Talk: | Treasuries plus 155 bps area, tightened to Treasuries plus 135 bps area plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $5 billion
|
| Maturity: | May 15, 2025
|
| Coupon: | 3.4%
|
| Spread: | Treasuries plus 150 bps
|
| Talk: | Treasuries plus 170 bps area, tightened to Treasuries plus 155 bps area plus or minus 5 bps
|
|
|
| 20-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | May 15, 2035
|
| Coupon: | 4.5%
|
| Spread: | Treasuries plus 190 bps
|
| Talk: | Treasuries plus 220 bps area, tightened to Treasuries plus 195 bps area plus or minus 5 bps
|
|
|
| 31-year notes
|
| Amount: | $3.5 billion
|
| Maturity: | May 15, 2046
|
| Coupon: | 4.75%
|
| Spread: | Treasuries plus 215 bps
|
| Talk: | Treasuries plus 240 bps area, tightened to Treasuries plus 220 bps area plus or minus 5 bps
|
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