AT&T will pay 75 basis points over Libor if it draws on the US$20bn bridge loan from JP Morgan for the T-Mobile USA acquisition, according to media reports. Reuters reported yesterday that AT&T is also looking to complete the syndication of the…
AT&T will pay 75 basis points over Libor if it draws on the US$20bn bridge loan from JP Morgan for the T-Mobile USA acquisition, according to media reports.
Reuters reported yesterday that AT&T is also looking to complete the syndication of the transaction by Friday.
AT&T would be asked to pay 8 basis points over Libor to keep the facility open while regulatory and competition authorities consider the deal, a process that AT&T estimates could take 12 months.
The company is reportedly offering sections of US$1.5bn or US$2.5bn of the facility to its key relationship banks. The bridge loan will support the US$25bn cash portion of the US$39bn transaction.
The lead arrangers for AT&T’s existing US$8bn revolving credit facility are Barclays Capital, Citigroup, JP Morgan, and Merrill Lynch, Pierce, Fenner & Smith.
AT&T declined to comment. JP Morgan did not reply to questions before the press deadline.
