New Issue: AT&T prices $10 billion of global notes in six tranches to strong demand

By Cristal Cody

Tupelo, Miss., Feb. 1 – Additional pricing details emerged for AT&T Inc.’s previously reported $10 billion offering of global notes (Baa1/BBB+/A-) priced in six tranches on Tuesday.

The notes priced on the tight side of guidance and were oversubscribed.

The company sold $1.25 billion of 3.2% notes due March 1, 2022 at 99.924 and a spread of 130 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission. The final book size was $4.6 billion.

AT&T placed $750 million of 3.8% notes due March 1, 2024 at 99.936 and a spread of Treasuries plus 155 bps. The book size was $2.9 billion.

The company priced $2 billion of 4.25% notes due March 1, 2027 at 99.94. The 10-year notes spread was Treasuries plus 180 bps. The final book size was $4.6 billion.

AT&T sold $3 billion of 5.25% bonds due March 1, 2037 at 99.529 and a spread of 220 bps over Treasuries. The notes were oversubscribed by $6.7 billion.

The $2 billion tranche of 5.45% notes due March 1, 2047 priced at 99.439, or Treasuries plus 240 bps. The book size was $4.9 billion.

In the final tranche, AT&T sold $1 billion of 5.7% notes due March 1, 2057 at 99.401 and a spread of 265 bps over Treasuries. The book size totaled $3.2 billion.

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Commerz Markets LLC, Goldman Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, SG Americas Securities, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including to repay upcoming debt maturities.

AT&T is a Dallas-based telecommunications company.

Issuer:	AT&T Inc.
Amount:	$10 billion
Securities:	Global notes
Bookrunners:	Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Commerz Markets LLC, Goldman Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, SG Americas Securities, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC
Senior co-managers:	Loop Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments, Inc.
Co-managers:	C. L. King & Associates Inc., Samuel A. Ramirez & Co. Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP, Academy Securities, Inc., CastleOak Securities, LP, Drexel Hamilton, LLC, MFR Securities, Inc. and Mischler Financial Group, Inc.
Trade date:	Jan. 31
Settlement date:	Feb. 9
Ratings:	Moody’s: Baa1
	S&P: BBB+
	Fitch: A-
Distribution:	SEC registered
Five-year notes
Amount:	$1.25 billion
Maturity:	March 1, 2022
Coupon:	3.2%
Price:	99.924
Spread:	Treasuries plus 130 bps
Price guidance:	Treasuries plus 135 bps area, plus or minus 5 bps
Call features:	Make-whole call at greater of par or Treasuries plus 20 bps before Feb. 1, 2022; thereafter at par
Seven-year notes
Amount:	$750 million
Maturity:	March 1, 2024
Coupon:	3.8%
Price:	99.036
Spread:	Treasuries plus 155 bps
Price guidance:	Treasuries plus 160 bps area, plus or minus 5 bps
Call features:	Make-whole call at greater of par or Treasuries plus 25 bps before Jan. 1, 2024; thereafter at par
Ten-year notes
Amount:	$2 billion
Maturity:	March 1, 2027
Coupon:	4.25%
Price:	99.94
Spread:	Treasuries plus 180 bps
Price guidance:	Treasuries plus 185 bps area, plus or minus 5 bps
Call features:	Make-whole call at greater of par or Treasuries plus 30 bps before Dec. 1, 2026; thereafter at par
Twenty-year notes
Amount:	$3 billion
Maturity:	March 1, 2037
Coupon:	5.25%
Price:	99.529
Spread:	Treasuries plus 220 bps
Price guidance:	Treasuries plus 225 bps area, plus or minus 5 bps
Call features:	Make-whole call at greater of par or Treasuries plus 35 bps before Sept. 1, 2036; thereafter at par
Forty-year notes
Amount:	$2 billion
Maturity:	March 1, 2047
Coupon:	5.45%
Price:	99.439
Spread:	Treasuries plus 240 bps
Price guidance:	Treasuries plus 245 bps area, plus or minus 5 bps
Call features:	Make-whole call at greater of par or Treasuries plus 40 bps before Sept. 1, 2046; thereafter at par
Fifty-year notes
Amount:	$1 billion
Maturity:	March 1, 2057
Coupon:	5.7%
Price:	99.401
Spread:	Treasuries plus 265 bps
Price guidance:	Treasuries plus 270 bps area, plus or minus 5 bps
Call features:	Make-whole call at greater of par or Treasuries plus 40 bps before Sept. 1, 2056; thereafter at par

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