Published on 2/14/2019 in the Prospect News Investment Grade Daily.
New Issue: AT&T offers details on $5 billion of fixed-rate notes in two parts
By Devika Patel
Knoxville, Tenn., Feb. 14 – AT&T Inc. gave further details about a $5 billion sale of global senior notes (Baa2/BBB/A-) that priced in two tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
AT&T sold $3 billion of 4.35% 10-year notes in line with guidance at a spread of Treasuries plus 170 bps. These notes priced at 99.508. The notes were initially talked to price in the Treasuries plus 187.5 bps area.
A $2 billion tranche of 4.85% 20-year notes priced on top of guidance at a Treasuries plus 220 bps spread. These notes priced at 95.291. Initial talk was in the Treasuries plus 237.5 bps area.
BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BBVA Securities Inc., Commerzbank Capital Markets Corp., Loop Capital Markets LLC, Mizuho Securities USA Inc., MUFG, Santander Investment Securities Inc., SG Americas Securities LLC and SMBC Nikko Securities America, Inc. were the bookrunners.
Proceeds will be used, along with about $1 billion of cash on hand, to redeem or repay $890,148,000 of 5.2% AT&T global notes due 2020, $1,119,880,000 of 5% AT&T global notes due 2021, $37,875,000 of 4.6% DirecTV senior notes due 2021, $39,924,000 of 5% DirecTV senior notes due 2021, $1 billion of 4.7% Time Warner notes due 2021 and $1 billion of 4.75% Time Warner notes due 2021.
AT&T is a Dallas-based telecommunications company.
| Issuer: | AT&T Inc.
|
| Amount: | $5 billion
|
| Securities: | Global senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BBVA Securities Inc., Commerzbank Capital Markets Corp., Loop Capital Markets LLC, Mizuho Securities USA Inc., MUFG, Santander Investment Securities Inc., SG Americas Securities LLC and SMBC Nikko Securities America, Inc.
|
| Senior co-managers: | Academy Securities, Inc., HSBC Securities (USA) Inc., ICBC Standard Bank plc and Scotia Capital (USA) Inc.
|
| Co-managers: | C.L. King & Associates, Inc., Cabrera Capital Markets, LLC, CastleOak Securities LP, Drexel Hamilton, LLC, MFR Securities, Inc., Samuel A. Ramirez & Co. Inc., Siebert Capital Markets and Williams Capital Group LP
|
| Trade date: | Feb. 13
|
| Settlement date: | Feb. 19
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| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $3 billion
|
| Maturity: | March 1, 2029
|
| Coupon: | 4.35%
|
| Price: | 99.508
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Dec. 1, 2028, then a par call
|
| Price guidance: | Treasuries plus 170 bps; initial talk at 187.5 bps area
|
|
|
| 20-year notes
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| Amount: | $2 billion
|
| Maturity: | March 1, 2039
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| Coupon: | 4.85%
|
| Price: | 95.291
|
| Spread: | Treasuries plus 220 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Sept. 1, 2038, then a par call
|
| Price guidance: | Treasuries plus 220 bps; initial talk at 237.5 bps area
|
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