Published on 1/29/2016 in the Prospect News Investment Grade Daily.
New Issue: AT&T prices $6 billion of bonds in four tranches
By Cristal Cody
Tupelo, Miss., Jan. 29 – AT&T Inc. priced $6 billion of global notes in four tranches on Friday, according to an informed source and an FWP filing with the Securities and Exchange Commission.
The company sold $1.25 billion of 2.8% five-year notes at 99.823 to yield 2.838%. The bonds priced with a spread of 150 basis points over Treasuries.
AT&T placed $1.5 billion of 3.6% seven-year notes at 99.925 to yield 3.612%, or 195 bps over Treasuries.
In the third tranche, AT&T priced $1.75 billion of 4.125% 10-year notes at 99.934 to yield 4.133%. The 10-year notes priced with a spread of Treasuries plus 220 bps.
In the final tranche, the company sold $1.5 billion of 5.65% bonds due Feb. 15, 2047 at 99.766 to yield 5.666%, or 290 bps over Treasuries.
Barclays, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BBVA Securities Inc., Santander Investment Securities Inc. and TD Securities (USA) LLC were the lead managers.
Proceeds will be used to repay debt due in 2016 and for general corporate purposes.
AT&T is a Dallas-based telecommunications company.
| Issuer: | AT&T Inc.
|
| Amount: | $6 billion
|
| Securities: | Global notes
|
| Bookrunners: | Barclays, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BBVA Securities Inc., Santander Investment Securities Inc., TD Securities (USA) LLC
|
| Senior co-managers: | Banca IMI SpA, Commerz Markets LLC, Loop Capital Markets LLC, SG Americas Securities, LLC, U.S. Bancorp Investments, Inc.
|
| Co-managers: | C. L. King & Associates Inc., Samuel A. Ramirez & Co. Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP, Blaylock Beal Van, LLC, CastleOak Securities, LP, MFR Securities Inc., Mischler Finance Group, Inc.
|
| Trade date: | Jan. 29
|
| Settlement date: | Feb. 9
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 17, 2021
|
| Coupon: | 2.8%
|
| Price: | 99.823
|
| Yield: | 2.838%
|
| Spread: | 150 bps over Treasuries
|
| Make-whole call: | Treasuries plus 25 bps
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 17, 2023
|
| Coupon: | 3.6%
|
| Price: | 99.925
|
| Yield: | 3.612%
|
| Spread: | 195 bps over Treasuries
|
| Make-whole call: | Treasuries plus 30 bps
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Feb. 17, 2026
|
| Coupon: | 4.125%
|
| Price: | 99.934
|
| Yield: | 4.133%
|
| Spread: | 220 bps over Treasuries
|
| Make-whole call: | Treasuries plus 35 bps
|
|
|
| 31-year bonds
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 15, 2047
|
| Coupon: | 5.65%
|
| Price: | 99.766
|
| Yield: | 5.666%
|
| Spread: | 290 bps over Treasuries
|
| Make-whole call: | Treasuries plus 40 bps
|
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