AT&T Sets $12.5 Billion Bond Sale to Refinance Debt

BUSINESS

3:45 AM PDT 5/22/2020 by Georg Szalai

The debt-laden company, led by Randall Stephenson, has been boosting its liquidity amid the novel coronavirus pandemic.

Telecom giant and WarnerMedia owner AT&T is raising another $12.5 billion via a bond sale, saying it will use the proceeds to repay outstanding debt.

The conglomerate has been boosting its liquidity amid the novel coronavirus pandemic, including earlier this week, when it said it was issuing €3 billion ($3.27 billion) in new debt. It previously also unveiled a $5.5 billion term loan to boost its financial flexibility amid the pandemic.

Its latest bond offering, which includes five types of global notes due between 2027 and 2060, will take advantage of a recent credit market rally. The interest rates on the bonds range from 2.3 percent to 3.85 percent.

In a regulatory filing on Friday, the company said it would use the proceeds from the new debt raise "for the early redemption or repayment of the ... outstanding debt."

AT&T, led by Randall Stephenson who will step down as CEO on July 1 and then serve as chairman until the start of 2021, has a heavy debt load, with more than $150 billion in debt as of the end of 2019.

Companies across the entertainment and other industries have been borrowing more to shore up their balance sheets amid concern about liquidity through the pandemic and the resulting recession. 


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