AT&T enters into $12 billion revolving credit agreement with Citibank

By Tali Rackner

Norfolk, Va., Dec. 15 – AT&T, Inc. entered into a $12 billion revolving credit agreement on Friday with Citibank, NA as administrative agent, replacing its $5 billion credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

The facility matures Dec. 11, 2020 and may be extended for two one-year periods.

There is an up to $2 billion accordion feature, available in $25 million increments.

Interest is equal to the one-, two-, three- or six-month Libor plus 68 basis points to 112.5 bps, based on the company’s credit ratings. The facility fee ranges from 7 bps to 12.5 bps, also based on ratings.

Certain financial covenants require AT&T to maintain a maximum ratio of net debt for borrowed money to consolidated EBITDA of 3.5 times.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays Bank plc, Merrill Lynch, Pierce, Fenner & Smith Inc., Mizuho Bank, Ltd. and Morgan Stanley MUFG Loan Partners LLC acted as joint lead arrangers and bookrunners on the deal. JPMorgan Chase Bank, NA acted as syndication agent, and Bank of America, NA, Barclays, Mizuho and Morgan Stanley MUFG acted as documentation agents.

The telecommunications company is based in Dallas.

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