New York, April 24 – AT&T Inc. released additional information on its $17.5 billion of global notes (Baa1/BBB+/A-) in a FWP filing with the Securities and Exchange Commission on Friday.
The six-tranche issue included
• $750 million of five-year floating-rate notes at par, or Libor plus 93 basis points. The floaters were talked at the Libor equivalent of the five-year fixed rate notes;
• $3 billion of 2.45% five-year notes that priced at 99.949, or Treasuries plus 110 bps. The notes came at the tight end of talk that had been set at 115 bps over Treasuries plus or minus 5 bps, tightened from initial price thoughts in the Treasuries plus 140 bps area;
• $2.75 billion of 3% seven-year notes that priced at 99.97, or Treasuries plus 130 bps. The notes came at the tight end of talk that had been set at 135 bps over Treasuries plus or minus 5 bps, tightened from initial price thoughts in the Treasuries plus 155 bps area;
• $5 billion of 3.4% 10-year notes that priced at 99.704, or Treasuries plus 150 bps. The notes came at the tight end of talk that had been set at 155 bps over Treasuries plus or minus 5 bps, tightened from initial price thoughts in the Treasuries plus 170 bps area;
• $2.5 billion of 4.5% 20-year notes at 99.711, or Treasuries plus 190 bps. The notes came at the tight end of talk that had been set at 195 bps over Treasuries plus or minus 5 bps, tightened from initial price thoughts in the Treasuries plus 220 bps area; and
• $3.5 billion of 4.75% 31-year notes at 99.644, or Treasuries plus 215 bps. The notes came at the tight end of talk that had been set at 220 bps over Treasuries plus or minus 5 bps, tightened from initial price thoughts in the Treasuries plus 240 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: | Global notes
|
| Amount: | $17.5 billion
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Fitch: A-
|
| Pricing date: | April 23
|
| Settlement date: | May 4
|
|
|
| Five-year floating-rate notes
|
| Amount: | $750 million
|
| Maturity: | June 30, 2020
|
| Coupon: | Libor plus 93 bps
|
| Price: | 100
|
| Call: | Non-callable
|
| Price talk: | Libor equivalent of fixed-rate notes
|
|
|
| Five-year fixed -rate notes
|
| Amount: | $3 billion
|
| Maturity: | June 30, 2020
|
| Coupon: | 2.45%
|
| Price: | 99.949
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole call at Treasuries plus 17.5 bps until May 30, 2020, then par
|
| Price talk: | Treasuries plus 115 bps area plus or minus 5 bps, tightened from Treasuries plus 140 bps
|
|
|
| Seven-year notes
|
| Amount: | $2.75 billion notes
|
| Maturity: | June 30, 2022
|
| Coupon: | 3%
|
| Price: | 99.970
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until April 30, 2020, then par
|
| Price talk: | Treasuries plus 135 bps area, tightened from Treasuries plus 155 bps area
|
|
|
| Ten-year notes
|
| Maturity: | May 15, 2025
|
| Amount: | $5 billion notes
|
| Coupon: | 3.4%
|
| Price: | 99.704
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Feb. 15, 2025, then par
|
| Price talk: | Treasures plus 155 bps, tightened from 170 bps over Treasuries
|
|
|
| Twenty-year notes
|
| Maturity: | May 15, 2035
|
| Amount: | $2.5 billion notes
|
| Coupon: | 4.5%
|
| Price: | 99.711
|
| Spread: | Treasuries plus 190 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Nov. 15, 2034, then par
|
| Price talk: | 195 bps over Treasuries, tightened from Treasuries plus 220 bps
|
|
|
| Thirty-one-year notes
|
| Maturity: | May 15, 2046
|
| Amount: | $3.5 billion notes
|
| Coupon: | 4.75%
|
| Price: | 99.644
|
| Spread: | Treasuries plus 215 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Nov. 15, 2045, then par
|
| Price talk: | Treasuries plus 220 bps area, tightened from Treasuries plus 240 bps area
|
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