By Susanna Moon
Chicago, Dec. 5 - AT&T Inc. said it accepted tenders for $3,285,117,000 of nine series of notes in the offers that ended at 11:59 p.m. ET on Dec. 4.
The total purchase price will be $3,618,234,549.90 plus accrued interest of $69,476,207.61, according to a company press release.
The offers began Nov. 5.
AT&T said on Nov. 20 that it lifted the maximum tender amount in the offers to $3,285,117,000 and eliminated the $500 million sub-cap for the 5.2% notes due 2016 and 5.625% global notes due 2016.
Before that, on Nov. 19, the company said it priced the tender offers for up to $2,285,117,000 of notes. The details are set out in the table below.
The total purchase prices include an early tender premium of $30 for each $1,000 principal amount of notes tendered by the early tender deadline.
Holders will also receive accrued interest up to but excluding the payment date, which was expected to be Dec. 5.
Originally, the maximum amount was set at $4 billion less the amount of the notes tendered and accepted for purchase in the company's any and all offers for 15 series of notes and debentures, which expired at 5 p.m. ET on Nov. 13.
The amount of notes tendered in the maximum offers are listed in order of priority acceptance level:
• $101,558,000, or 25.39%, of BellSouth Corp.'s $400 million of 5.2% notes due 2016;
• $405,057,000, or 32.4%, of AT&T Inc.'s $1.25 billion of 5.625% global notes due 2016;
• $827,077,000, or 41.74%, of AT&T Inc.'s $1,981,282,000 of 6.5% global notes due 2037;
• $934,725,000, or 33.99%, of AT&T Inc.'s $2.75 billion of 6.3% global notes due 2038;
• $812,731,000, or 36.12%, of AT&T Inc.'s $2.25 billion of 6.55% global notes due 2039;
• $85,264,000, or 17.36%, of AT&T Inc.'s $491,219,000 of 6.45% global notes due 2034;
• $131,851,000 of AT&T Inc.'s $445.62 million of 6.4% global notes due 2038;
• $93,912,000 of AT&T Inc.'s $586,254,000 of 6.15% global notes due 2034; and
• $94,048,000 of Pacific Bell Telephone Co.'s $625 million of 7.125% debentures due 2026.
AT&T accepted for purchase $118,705,000 of priority-level seven notes on a pro rata basis and none of the priority-level eight or nine notes.
The amount of priority-level seven notes accepted represents 26.64% of the outstanding notes and a pro ration factor of about 90%.
Any and all offers
As previously reported, AT&T received tenders for $1,714,883,000 principal amount of notes in the any and all offers as follows:
• $4,043,000 of BellSouth's 7.12% debentures due 2097;
• $55.38 million of BellSouth Telecommunications, LLC's 7% debentures due 2095;
• $123,356,000 of BellSouth Telecommunications' 6.65% zero-to-full debentures due 2095;
• $184,533,000 of BellSouth's 7.875% debentures due 2030;
• $101,793,000 of BellSouth's 6.875% notes due 2031;
• $144,271,000 of BellSouth's 6.55% notes due 2034;
• $132,587,000 of Ameritech Capital Funding Corp.'s 6.875% debentures due 2027;
• $142,388,000 of Ameritech Capital Funding's 6.55% debentures due 2028;
• $66,684,000 of Indiana Bell Telephone Co., Inc.'s 7.3% debentures due 2026;
• $132,282,000 of BellSouth Telecommunications' 7% debentures due 2025;
• $168.26 million of BellSouth's 6% notes due 2034;
• $166.45 million of BellSouth Telecommunications' 6.375% debentures due 2028;
• $92,624,000 of AT&T Inc.'s 6.8% notes due 2036;
• $74,394,000 of New Cingular Wireless Services, Inc.'s 8.75% senior notes due 2031; and
• $125,838,000 of AT&T Corp.'s 6.5% notes due 2029.
Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) are the lead dealer managers. The tender and information agent is Global Bondholder Services Corp. (866 873-7700 or 212 430-3774).
AT&T is a telecommunications company based in Dallas.
AT&T any and all tender offers prices
| Debentures | Amount outstanding | Fixed spread | Total payment
|
| 7.12% debentures due 2097 | $293,144,000 | 245 bps | $1,126.83
|
| 7% debentures due 2095 | $240,899,000 | 245 bps | $1,107.94
|
| 6.65% zero-to-full debentures due 2095 | $268,962,000 | 245 bps | $924.80
|
| 7.875% debentures due 2030 | $690.22 million | 195 bps | $1,214.69
|
| 6.875% notes due 2031 | $505,451,000 | 185 bps | $1,129.08
|
| 6.55% notes due 2034 | $510,459,000 | 190 bps | $1,093.97
|
| 6.875% debentures due 2027 | $200 million | 255 bps | $1,156.31
|
| 6.55% debentures due 2028 | $400 million | 255 bps | $1,126.03
|
| 7.3% debentures due 2026 | $150 million | 255 bps | $1,186.15
|
| 7% debentures due 2025 | $300 million | 235 bps | $1,170.10
|
| 6% notes due 2034 | $528,871,000 | 185 bps | $1,034.72
|
| 6.375% debentures due 2028 | $500 million | 245 bps | $1,121.57
|
| 6.8% notes due 2036 | $267.87 million | 180 bps | $1,143.49
|
| 8.75% senior notes due 2031 | $896,496,000 | 130 bps | $1,406.80
|
| 6.5% notes due 2029 | $263,472,000 | 140 bps | $1,128.87
|
|
|
| Maximum tender offers
|
| Notes | Reference yield | Reference yield | Fixed spread | Total payment
|
| 5.2% notes | 0.625% Treasury note due Oct. 15, 2016 | 0.554% | 55 bps | $1,121.63
|
| 5.625% notes | 0.625% Treasury note due Oct. 15, 2016 | 0.554% | 35 bps | $1,117.72
|
| 6.5% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 185 bps | $1,103.69
|
| 6.3% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 185 bps | $1,078.45
|
| 6.55% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 185 bps | $1,113.26
|
| 6.45% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 160 bps | $1,123.02
|
| 6.4% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 180 bps | $1,099.12
|
| 6.15% notes | 2.875% Treasury note due May 15, 2043 | 3.847% | 160 bps | $1,086.71
|
| 7.125% notes | 2.5% Treasury note due Aug. 15, 2023 | 2.691% | 200 bps | $1,225.13 |
|
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