By Andrea Heisinger
New York, June 11 - AT&T Inc. priced $2 billion of notes (A2/A-/A) in two parts on Monday, an informed source said.
The $1.15 billion of 1.7% five-year notes priced at 99.806 to yield 1.741% with a spread of Treasuries plus 105 basis points. The notes were sold at the tight end of guidance in the 110 bps area.
The tranche has a make-whole call at 15 bps over Treasuries.
A second tranche was a reopening of 3% notes due 2022 to add $850 million. The notes were sold at 100.432 to yield 2.948% with a spread of Treasuries plus 135 bps. Thee tranche was priced at the low end of price talk in the 140 bps area.
There is a make-whole call at 20 bps over Treasuries.
Total issuance for the 10-year notes is $1.85 billion including $1 billion sold at 105 bps over Treasuries as part of a $3 billion deal in three tranches on Feb. 8.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were bookrunners.
Proceeds are being used for general corporate purposes.
The telecommunications company is based in Dallas.
| Issuer: | AT&T Inc.
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC Trade date: | June 11
|
| Settlement date: | June 14
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A-
|
| Fitch: A
|
|
|
| Five-year notes
|
| Amount: | $1.15 billion
|
| Maturity: | June 1, 2017
|
| Coupon: | 1.7%
|
| Price: | 99.806
|
| Yield: | 1.741%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 110 bps area
|
|
|
| 10-year notes
|
| Amount: | $850 million, reopened
|
| Maturity: | Feb. 15, 2022
|
| Coupon: | 3%
|
| Price: | 100.432
|
| Yield: | 2.948%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 140 bps area
|
| Total issuance: | $1.85 billion, including $1 billion priced on Feb. 8
|
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