AT&T Announces Redemption of Global Notes

Rhea-AI Summary

AT&T (NYSE:T) has announced the redemption of its 5.625% Global Notes due 2067. The company redeemed the outstanding principal amount at a redemption price of $830,285,156.25, which equals 100% of the principal amount plus accrued interest through December 11, 2024. On a per note basis, the redemption price was approximately $25.160156. The Bank of New York Mellon Trust Company, N.A. serves as the paying agent for the Notes.

Positive

• Complete redemption of long-term debt obligations
• Full payment of principal and interest to noteholders

Negative

• Cash outflow of $830.3 million for debt redemption

Insights

Financial Analyst

AT&T's redemption of $830.3M in global notes marks a significant debt management move. With a relatively high 5.625% interest rate, retiring these long-dated notes due in 2067 helps optimize the company's debt structure and reduce future interest expenses. This action aligns with AT&T's broader deleveraging strategy, demonstrating proactive financial management. The redemption price at 100% of principal plus accrued interest indicates standard market terms. Given AT&T's substantial $168.6B market cap, while this transaction represents a modest portion of their total debt, it's a positive step in strengthening their balance sheet and improving their financial flexibility.

DALLAS, Dec. 12, 2024 /PRNewswire/ -- Today AT&T redeemed its 5.625% global notes due 2067.

Key Takeaway:

• AT&T redeemed the outstanding principal amount of its 5.625% Global Notes due 2067

AT&T (NYSE:T) today redeemed the outstanding principal amount of its 5.625% Global Notes due 2067 (CUSIP 00206R409, NYSE ticker symbol TBC) (the "Notes"). 

The Notes were redeemed at the redemption price of $830,285,156.25, which is equal to 100% of the principal amount of the Notes plus accrued interest payable through December 11, 2024. On a per note basis, the redemption price was approximately $25.160156.

The paying agent for the Notes is The Bank of New York Mellon Trust Company, N.A. and can be contacted at the following address:

The Bank of New York Mellon Trust Company, N.A.
c/o the Bank of New York Mellon
500 Ross Street, Suite 625
Pittsburg, PA 15262
Attention: Transfers/Redemptions

The last distribution will be paid to each holder of Notes to be redeemed in accordance with the applicable depository's relevant procedures.

To automatically receive AT&T financial news by email, please subscribe to email alerts.

About AT&T

We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

© 2024 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/att-announces-redemption-of-global-notes-302330815.html

SOURCE AT&T

FAQ

What is the total redemption amount for AT&T's (T) 5.625% Global Notes?

AT&T's redemption amount for the 5.625% Global Notes is $830,285,156.25, which includes the principal amount plus accrued interest through December 11, 2024.

What is the per note redemption price for AT&T's (T) Global Notes?

The per note redemption price for AT&T's Global Notes is approximately $25.160156.

When were AT&T's (T) 5.625% Global Notes originally due to mature?

AT&T's 5.625% Global Notes were originally due to mature in 2067.

Who is the paying agent for AT&T's (T) Global Notes redemption?

The Bank of New York Mellon Trust Company, N.A. is serving as the paying agent for AT&T's Global Notes redemption.