AT&T to issue $2.45 billion 2028 notes, $3.16 billion 2030 notes in exchange for numerous issues

By Susanna Moon

Chicago, Nov. 29 – AT&T Inc. gave the results of two private exchange offers for 46 series of notes that ended at 11:59 p.m. ET on Nov. 28.

In exchange, AT&T expects to issue $2,449,011,000 principal amount of new 2028 notes and $3,156,272,000 principal amount of new 2030 notes plus accrued interest, according to a company announcement.

As previously announced, the yield on the 2028 notes will be 4.117%, and the issue price will be $998.65, set using the bid-side yield on the 2.25% Treasury due Aug. 15, 2027, which was 2.367%, plus 175 basis points.

The yield on the 2030 notes will be 4.317%, and the issue price will be $998.46, set using the bid-side yield on the 2.25% Treasury due Aug. 15, 2027 plus 195 bps.

The spread over the benchmark security for new 2028 notes being offered under pool 1 of the company’s maturity extension exchange offers was revised to 175 bps, as announced Nov. 13. The spread for new 2030 notes being offered under pool 2 of the maturity extension offers was changed to 195 bps.

The yield on the 2046 notes will be 5.192%, and the issue price will be $993.77, set using the bid-side yield on the 3% Treasury due May 15, 2047, which was 2.792%, plus 240 bps.

The exchange offers began Oct. 30 with an early deadline of 5 p.m. ET on Nov. 15, extended from 5 p.m. ET on Nov. 13.

In the maturity extension exchange offer, under pool 1 the company was offering new series of senior notes due 2028 in exchange for 11 series of outstanding notes. AT&T previously said it would accept an amount of notes that results in the issuance of no more than $4 billion of new 2028 notes.

AT&T said it expects to accept tenders for all of the pool 1 notes with acceptance priority levels 1 through 11.

In pool 2 of the maturity extension exchange offer, the company was offering the new series of senior notes due 2030, in exchange for seven series of outstanding notes. AT&T previously said it would accept an amount of notes that results in the issuance of no more than $4 billion of new 2030 notes.

For the pool 2 notes, the company will accept all of the notes with acceptance priority levels 1 through 7.

© 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.