AT&T brings $17.5 billion in third-largest offering ever; Citigroup sells $5 billion notes

By Stephanie Rotondo and Sheri Kasprzak

New York, April 23 – It was a big day for AT&T Inc. Not only did the telecommunications company post solid first-quarter earnings Thursday, it also completed the third-largest investment-grade offering in history, behind a $49 billion Verizon Communications Inc. deal and Actavis Funding SCS’s $21 billion sale.

The $17.5 billion offering included $3 billion of five-year notes at Treasuries plus 110 basis points, $750 million of five-year floating-rate notes, $2.75 billion of seven-year notes at Treasuries plus 130 bps, $5 billion of 10-year notes at Treasuries plus 150 bps, $2.5 billion of 20-year notes at Treasuries plus 190 bps and $3.5 billion of 31-year notes at Treasuries plus 215 bps.

The joint bookrunners for the deal were BofA Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.

Also during the session, Citigroup Inc. sold $5 billion of notes (Baa2/A-/A), including $2.5 billion of 1.7% senior notes due April 27, 2018, $1.5 billion of 3.3% senior notes due April 27, 2025 and $1 billion of floating-rate senior notes due April 27, 2018, with the latter notes bearing interest at three-month Libor plus 69 bps.

Citigroup Global Markets Inc. was the sole book manager.

Banks and brokers CDS costs held steady in Thursday trading, according to a market source.

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