Dallas, Texas, May 28, 2020

AT&T INC. ANNOUNCES SETTLEMENT OF EURO AND USD BOND ISSUANCES AND EARLY REPAYMENT OF DEBT

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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