AT&T INC. ANNOUNCES SETTLEMENT OF EURO AND USD BOND ISSUANCES AND EARLY REPAYMENT OF DEBT
Company maintains commitment to high-quality debt metrics
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.