By Andrea Heisinger
New York, Dec. 6 - AT&T Inc. was in the market on Thursday with a $4 billion sale of notes (A2/A/) in three tranches, an informed source said.
The sale included $1 billion of 0.8% three-year notes sold at a spread of Treasuries plus 50 basis points. Pricing was much tighter than initial talk in the 62.5 bps area.
A $1.5 billion tranche of 1.4% five-year notes priced at 80 bps over Treasuries. Pricing was tight to talk in the 87.5 bps area.
A $1.5 billion tranche of 2.625% 10-year bonds sold at Treasuries plus 105 bps. The spread was at the tight end of guidance in the 110 bps area.
Full terms were not available at press time.
Bank of America Merrill Lynch and Goldman Sachs & Co. were the bookrunners.
AT&T last sold bonds in the U.S. market in a $2 billion sale in two tranches on June 11.That offering included 1.7% five-year notes priced at 105 bps over Treasuries and reopened 3% 10-year notes sold at 135 bps over Treasuries.
The telecommunications company is based in Dallas.
| Issuer: | AT&T Inc.
|
| Issue: | Notes
|
| Amount: | $4 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co.
|
| Trade date: | Dec. 6
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | 2015
|
| Coupon: | 0.8%
|
| Spread: | Treasuries plus 50 bps
|
| Price talk: | 62.5 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | 2017
|
| Coupon: | 1.4%
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | 87.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | 2022
|
| Coupon: | 2.625%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | 110 bps area
|
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