By Andrea Heisinger
New York, Aug. 15 - AT&T Inc. tapped the debt market for an upsized $5 billion of global notes (A2/A-/A) in three maturities on Monday, a source away from the sale said.
The size of the deal had been projected at $4 billion, but investor interest bumped up the size at the launch, a source said.
The $1.5 billion of 2.4% five-year notes was priced at 99.673 to yield 2.47% with a spread of Treasuries plus 148 basis points. The notes were sold at the tight end of guidance in the 150 bps area.
The tranche has a make-whole call at 25 bps over Treasuries.
A $1.5 billion tranche of 3.875% 10-year notes sold at 99.705 to yield 3.911% with a spread of 160 bps over Treasuries. The notes were priced at the tight end of talk, which was in the 160 bps to 165 bps range.
The notes are callable at a make-whole amount of 25 bps over Treasuries.
The third part was $2 billion of 5.55% 30-year bonds sold at 99.336 to yield 5.596% with a spread of Treasuries plus 185 bps. The bonds sold at the low end of talk, which was in the 185 bps to 190 bps range.
The bonds have a make-whole call at 30 bps over Treasuries.
J.P. Morgan Securities LLC was the bookrunner.
Proceeds will be used for general corporate purposes, including repayment of maturing debt.
AT&T last sold debt in a $3 billion sale in two tranches on April 26. The 2.95% five-year notes from that deal priced at 97 bps over Treasuries, while a 4.45% 10-year note priced at Treasuries plus 115 bps.
The communications company is based in Dallas.
| Issuer: | AT&T Inc.
|
| Issue: | Global notes
|
| Amount: | $5 billion, increased from $4 billion
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Trade date: | Aug. 15
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A-
|
| Fitch: A
|
|
|
| Five-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Aug. 15, 2016
|
| Coupon: | 2.4%
|
| Price: | 99.673
|
| Yield: | 2.47%
|
| Spread: | Treasuries plus 148 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 150 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Aug. 15, 2021
|
| Coupon: | 3.875%
|
| Price: | 99.705
|
| Yield: | 3.911%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 160 to 165 bps
|
|
|
| 30-year bonds
|
| Amount: | $2 billion
|
| Maturity: | Aug. 15, 2041
|
| Coupon: | 5.55%
|
| Price: | 99.336
|
| Yield: | 5.596%
|
| Spread: | Treasuries plus 185 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 185 to 190 bps
|
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