US telco AT&T has entered into a US$9.155bn dual tranche syndicated credit agreement, which consists of a US$6.28bn and a US$2.869bn term loan facilities.
The first tranche will mature three years from the funding date, while the second tranche will…
US telco AT&T has entered into a US$9.155bn dual tranche syndicated credit agreement, which consists of a US$6.28bn and a US$2.869bn term loan facilities.
The first tranche will mature three years from the funding date, while the second tranche will begin to amortise on the third anniversary of the funding date, with 25% being payable prior to the fifth anniversary of the funding, the telco said in a securities filing.
Mizuho acted as administrative agent. Other unnamed lenders also took part in the transaction.
The company also inked a US$2bn 18-month credit agreement with the Japanese bank as initial lender and agent.
Proceeds from the offering will be used for general corporate purposes, including acquisition-related payments.
Fitch assigned an A rating to the transaction, although it confirmed a negative watch for AT&T’s issuer default rating (IDR) and debt securities as a result of the telco’s acquisition of satellite provider DirecTV, which is awaiting regulatory approval.
Moody’s and S&P rated the deal A3 and A- respectively.
Earlier this week, the Texas-based carrier completed its US$2.5bn acquisition of Mexico’s third-largest operator Iusacell from Grupo Salinas.
The telco is also taking part in the US’ ongoing AWS-3 spectrum auction, which kicked off last November and has so far raised US$44.8bn.
Also in November, the company issued two multi-tranche note offerings, one worth €3.8bn (US$4.7bn) and the other SFr1.05bn (US$1.088bn).
