By Cristal Cody
Tupelo, Miss., Feb. 13 – AT&T Inc. priced $5 billion of global senior notes (Baa2/BBB/A-) in two tranches on Wednesday, according to a market source.
AT&T sold $3 billion of 4.35% 10-year notes in line with guidance at a spread of Treasuries plus 170 bps. The notes were initially talked to price in the Treasuries plus 187.5 bps area.
A $2 billion tranche of 4.85% 20-year notes priced on top of guidance at a Treasuries plus 220 bps spread. Initial talk was in the Treasuries plus 237.5 bps area.
BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used, along with about $1 billion of cash on hand, to redeem or repay $890,148,000 of 5.2% AT&T global notes due 2020, $1,119,880,000 of 5% AT&T global notes due 2021, $37,875,000 of 4.6% DirecTV senior notes due 2021, $39,924,000 of 5% DirecTV senior notes due 2021, $1 billion of 4.7% Time Warner notes due 2021 and $1 billion of 4.75% Time Warner notes due 2021.
AT&T is a Dallas-based telecommunications company.
| Issuer: | AT&T Inc.
|
| Amount: | $5 billion
|
| Securities: | Global senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Trade date: | Feb. 13
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $3 billion
|
| Maturity: | March 1, 2029
|
| Coupon: | 4.35%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 170 bps; initial talk at 187.5 bps area
|
|
|
| 20-year notes
|
| Amount: | $2 billion
|
| Maturity: | March 1, 2039
|
| Coupon: | 4.85%
|
| Spread: | Treasuries plus 220 bps
|
| Price guidance: | Treasuries plus 220 bps; initial talk at 237.5 bps area
|
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