AT&T has priced US$2.5bn of global notes split between three tranches and plans to use the proceeds pending spectrum and wireless acquisitions.
Goldman Sachs, BofA Merrill Lynch and Wells Fargo are acting as joint bookrunners on the offering.
AT&T is…
AT&T has priced US$2.5bn of global notes split between three tranches and plans to use the proceeds pending spectrum and wireless acquisitions.
Goldman Sachs, BofA Merrill Lynch and Wells Fargo are acting as joint bookrunners on the offering.
AT&T is issuing US$1.1bn of 2.3% global notes due 2019, which priced at 99.99; US$1bn of 3.9% notes due 2024, which priced at 99.69; and US$400m in floating rate notes due 2019, which will carry interest at LIBOR plus 67 bps and priced at 99.7%.
The Dallas-based operator has a number of pending acquisitions. In January it agreed to buy 49 AWS spectrum licences from private investor Aloha Partners II for an undisclosed fee. The frequencies cover nearly 50 million people across 14 states.
AT&T also hopes to complete the US$4bn acquisition of prepay operator Leap Wireless – which it agreed to buy last July – by the end of the quarter.
There is also the possibility that AT&T could bid for British telco Vodafone Group this year. AT&T’s CEO, Randall Stephenson, has been a frequent visitor to Europe over the past year and he has said the company is interested in expanding abroad.
In late January AT&T ruled out a bid for Vodafone after the UK’s takeover watchdog asked it to clarify its position following reports that it had been in dialogue with European regulators regarding a takeover.
The disclosure means AT&T is barred from making an offer for six months starting from 27 January. However, that restriction would be waived if the British company invites AT&T to bid, or if a third party bids for Vodafone.
Moody’s, S&P and Fitch rated AT&T’s new notes A3, A- and A respectively.
