By Cristal Cody
Tupelo, Miss., July 27 – AT&T Inc. priced $11 billion of senior global notes (Baa2/BBB/A-) in five tranches on Monday to heavy demand, according to a market source.
A $2.25 billion tranche of 1.65% notes due Feb. 1, 2028 priced at 99.874 to yield 1.668%, or a spread of Treasuries plus 120 basis points.
Initial price talk was in the Treasuries plus 150 bps area.
The company sold $2.5 billion of 2.25% notes due Feb. 1, 2032 at 99.819 to yield 2.268%. The notes priced with a Treasuries plus 165 bps spread.
The notes were talked to print at the 185 bps over Treasuries area.
AT&T priced $2.5 billion of 3.1% notes due Feb. 1, 2043 at 99.952 to yield 3.103% and with a 185 bps over Treasuries spread.
Initial price guidance was in the 205 bps spread area.
A $2.25 billion offering of 3.3% notes due Feb. 1, 2052 came at a spread of 205 bps over Treasuries. The issue priced at 99.942 to yield 3.303%.
The notes were talked at the 225 bps over Treasuries area.
Also, a $1.5 billion tranche of 3.5% notes due Feb. 1, 2061 priced at 99.936 to yield 3.503%, or a Treasuries plus 225 bps spread.
Initial guidance was in the 245 bps over Treasuries area.
The deal had a final combined order book of more than $27 billion.
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC will bill and deliver. Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC were active bookrunners.
Proceeds will be used for general corporate purposes, including the cash consideration for the company’s planned tender offer for debt securities.
AT&T is a Dallas-based telecommunications company.
| Issuer: | AT&T Inc.
|
| Amount: | $11 billion
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| Securities: | Senior global notes
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| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC (bill and deliver), Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC
|
| Trade date: | July 27
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| Settlement date: | Aug. 4
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Notes due 2028
|
| Amount: | $2.25 billion
|
| Maturity: | Feb. 1, 2028
|
| Coupon: | 1.65%
|
| Price: | 99.874
|
| Yield: | 1.668%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps; par call two months before maturity
|
| Price guidance: | Treasuries plus 150 bps
|
|
|
| Notes due 2032
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| Amount: | $2.5 billion
|
| Maturity: | Feb. 1, 2032
|
| Coupon: | 2.25%
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| Price: | 99.819
|
| Yield: | 2.268%
|
| Spread: | Treasuries plus 165 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps; par call three months before maturity
|
| Price guidance: | Treasuries plus 185 bps area
|
|
|
| Notes due 2043
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| Amount: | $2.5 billion
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| Maturity: | Feb. 1, 2043
|
| Coupon: | 3.1%
|
| Price: | 99.952
|
| Yield: | 3.103%
|
| Spread: | Treasuries plus 185 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps; par call six months before maturity
|
| Price guidance: | Treasuries plus 205 bps area
|
|
|
| Notes due 2052
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| Amount: | $2.25 billion
|
| Maturity: | Feb. 1, 2052
|
| Coupon: | 3.3%
|
| Price: | 99.942
|
| Yield: | 3.303%
|
| Spread: | Treasuries plus 205 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps; par call six months before maturity
|
| Price guidance: | Treasuries plus 225 bps area
|
|
|
| Notes due 2061
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| Amount: | $1.5 billion
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| Maturity: | Feb. 1, 2061
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| Coupon: | 3.5%
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| Price: | 99.936
|
| Yield: | 3.503%
|
| Spread: | Treasuries plus 225 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps; par call six months before maturity
|
| Price guidance: | Treasuries plus 245 bps area
|
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