AT&T Inc. Announces Settlement of Euro and USD Bond Issuances and Early Repayment of Debt
May 28 2020 - 4:31PM
Business Wire
Company maintains commitment to high-quality
debt metrics
AT&T Inc.
(NYSE: T) continues to actively
de-risk its capital structure, extending debt maturities at
historically low coupons.
On May 27, 2020, AT&T closed its sale of €3 billion combined
principal amount of its Global Notes due 2028, 2032 and 2038.
Additionally, the company announced today the settlement of $12.5
billion combined principal amount of its Global Notes due 2027,
2031, 2041, 2051 and 2060. The total of these issuances is
approximately $15.8 billion U.S. Dollar equivalent.
Proceeds from the issuances will primarily be used for the
prepayment of upcoming debt maturities. AT&T has issued notices
for the redemption in full of all the outstanding principal amount
of six series of bonds totaling approximately $8.6 billion and term
loans totaling $6.3 billion. The total principal of these
prepayments is approximately $14.9 billion.
This series of transactions is consistent with AT&T’s plans
to continue improving its credit quality even as it remains
committed to paying a dividend to its shareholders and investing in
its growth areas — HBO Max, 5G and fiber. For full-year 2020,
AT&T expects its dividend payout of free cash flow ratio will
be in the 60% range and is targeting the low end of that range.
This gives the company the flexibility to continue to reduce debt
levels during 2020.
AT&T products and services are provided or offered by
subsidiaries and affiliates of AT&T Inc. under the AT&T
brand and not by AT&T Inc. Additional information is available
at about.att.com. © 2020 AT&T Intellectual Property. All rights
reserved. AT&T, the Globe logo and other marks are trademarks
and service marks of AT&T Intellectual Property and/or AT&T
affiliated companies. All other marks contained herein are the
property of their respective owners.
Cautionary Language Concerning Forward-Looking
Statements
Information set forth in this news release contains financial
estimates and other forward-looking statements that are subject to
risks and uncertainties, and actual results might differ
materially. A discussion of factors that may affect future results
is contained in AT&T’s filings with the Securities and Exchange
Commission. AT&T disclaims any obligation to update and revise
statements contained in this news release based on new information
or otherwise.
This news release may contain certain non-GAAP financial
measures. Reconciliations between the non-GAAP financial measures
and the GAAP financial measures are available on the company’s
website at https://investors.att.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200528005822/en/
Fletcher Cook AT&T Inc. Phone: 214-912-8541 Email:
fletcher.cook@att.com
Daphne Avila AT&T Inc. Phone: 972-266-3866 Email:
daphne.avila@att.com
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