By Devika Patel
Knoxville, Tenn., July 28 – AT&T Inc. offered further details about a $22.5 billion sale of global senior notes (Baa1/BBB+/A-) that priced in seven tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $750 million of floating-rate notes due Feb. 14, 2023 at Libor plus 89 basis points, on the tight side of talk in the Libor plus 94 bps area, plus or minus 5 bps. These notes priced at par.
It priced $1.75 billion of 2.85% notes due Feb. 14, 2023 at a spread of Treasuries plus 100 bps. The notes were talked to come in the Treasuries plus 105 bps area, plus or minus 5 bps. These notes priced at 99.984.
The $3 billion tranche of 3.4% notes due Aug. 14, 2024 were sold at a Treasuries plus 130 bps spread, compared to talk in the Treasuries plus 135 bps area, plus or minus 5 bps. These notes priced at 99.832.
AT&T sold $5 billion of 3.9% notes due Aug. 14, 2027 at a spread of 160 bps over Treasuries. The notes were talked in the Treasuries plus 165 bps area, plus or minus 5 bps. These notes priced at 99.827.
The $4.5 billion tranche of 4.9% notes due Aug. 14, 2037 priced at Treasuries plus 200 bps. Price guidance on the notes was in the Treasuries plus 205 bps area, plus or minus 5 bps. These notes priced at 99.822.
AT&T sold $5 billion of 5.15% notes due Feb. 14, 2050 at a spread of 225 bps over Treasuries, on the tight side of talk in the Treasuries plus 230 bps area, plus or minus 5 bps. These notes priced at 99.779.
The final tranche of $2.5 billion of 5.3% notes due Aug. 14, 2058 was sold with a Treasuries plus 240 bps spread. Price guidance on the bonds was in the Treasuries plus 245 bps area, plus or minus 5 bps. These notes priced at 99.766.
The deal had a final book size of $58.5 billion.
BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and MUFG were the bookrunners.
Proceeds will be used for general corporate purposes, including the company’s planned acquisition of Time Warner Inc.
AT&T is a Dallas-based telecommunications company.
| Issuer: | AT&T Inc.
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| Amount: | $22.5 billion
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| Securities: | Global senior notes
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| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and MUFG
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| Senior co-managers: | Loop Capital Markets LLC, BNY Mellon Capital Markets LLC and U.S. Bancorp Investments Inc.
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| Co-managers: | CastleOak Securities LP, C.L. King & Associates, Inc., Samuel A. Ramirez & Co. Inc., Siebert Capital Markets and Williams Capital Group LP
|
| Trade date: | July 27
|
| Settlement date: | Aug. 7
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
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| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Six-year floaters
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| Amount: | $750 million
|
| Maturity: | Feb. 14, 2023
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| Coupon: | Libor plus 89 bps
|
| Price: | Par
|
| Call: | Non-callable
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| Price guidance: | Libor plus 94 bps area, plus or minus 5 bps
|
|
|
| Six-year notes
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| Amount: | $1.75 billion
|
| Maturity: | Feb. 14, 2023
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| Coupon: | 2.85%
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| Price: | 99.984
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Jan. 14, 2023, then a par call
|
| Price guidance: | Treasuries plus 105 bps area, plus or minus 5 bps
|
|
|
| Seven-year notes
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| Amount: | $3 billion
|
| Maturity: | Aug. 14, 2024
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| Coupon: | 3.4%
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| Price: | 99.832
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until June 14, 2024, then a par call
|
| Price guidance: | Treasuries plus 135 bps area, plus or minus 5 bps
|
|
|
| Ten-year notes
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| Amount: | $5 billion
|
| Maturity: | Aug. 14, 2027
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| Coupon: | 3.9%
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| Price: | 99.827
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until May 14, 2027, then a par call
|
| Price guidance: | Treasuries plus 165 bps area, plus or minus 5 bps
|
|
|
| Twenty-year notes
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| Amount: | $4.5 billion
|
| Maturity: | Aug. 14, 2037
|
| Coupon: | 4.9%
|
| Price: | 99.822
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Feb. 14, 2037, then a par call
|
| Price guidance: | Treasuries plus 205 bps area, plus or minus 5 bps
|
|
|
| Thirty-three-year notes
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| Amount: | $5 billion
|
| Maturity: | Feb. 14, 2050
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| Coupon: | 5.15%
|
| Price: | 99.779
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Aug. 14, 2049, then a par call
|
| Price guidance: | Treasuries plus 230 bps area, plus or minus 5 bps
|
|
|
| Forty-one-year notes
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| Amount: | $2.5 billion
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| Maturity: | Aug. 14, 2058
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| Coupon: | 5.3%
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| Price: | 99.766
|
| Spread: | Treasuries plus 240 bps
|
| Call: | Make-whole call at Treasuries plus 37.5 bps until Feb. 14, 2058, then a par call
|
| Price guidance: | Treasuries plus 245 bps area, plus or minus 5 bps
|
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