AT&T subsidiaries plan redemption of $710 million of long-term debt

By Devika Patel

Knoxville, Tenn., Aug. 28 - AT&T, Inc. said two of its subsidiaries plan to redeem all of their long-term debt on Sept. 28.

Pacific Bell will redeem its $100 million of 7.25% debentures due Nov. 1, 2027 and Southwestern Bell Telephone Co. will redeem its $150 million of 7.375% debentures due July 15, 2027 and its $100 million of 7% debentures due Nov. 15, 2027.

The Bank of New York Mellon is the trustee.

Other subsidiaries also plan to redeem an additional $360 million of long-term debt in October.

The roughly $745 million redemption will be funded primarily with cash on hand. AT&T expects the redemption to result in a pre-tax charge of about $15 million to its third-quarter 2009 financial results and $9 million to its fourth-quarter results.

The phone and internet services provider is based in Dallas.

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