Company maintains commitment to high-quality debt metrics
On May 27, 2020, AT&T closed its sale of €3 billion combined principal amount of its Global Notes due 2028, 2032 and 2038. Additionally, the company announced today the settlement of $12.5 billion combined principal amount of its Global Notes due 2027, 2031, 2041, 2051 and 2060. The total of these issuances is approximately $15.8 billion U.S. Dollar equivalent.
Proceeds from the issuances will primarily be used for the prepayment of upcoming debt maturities. AT&T has issued notices for the redemption in full of all the outstanding principal amount of six series of bonds totaling approximately $8.6 billion and term loans totaling $6.3 billion. The total principal of these prepayments is approximately $14.9 billion.
This series of transactions is consistent with AT&T’s plans to continue improving its credit quality even as it remains committed to paying a dividend to its shareholders and investing in its growth areas — HBO Max, 5G and fiber. For full-year 2020, AT&T expects its dividend payout of free cash flow ratio will be in the 60% range and is targeting the low end of that range. This gives the company the flexibility to continue to reduce debt levels during 2020.
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Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company’s website at https://investors.att.com.
Fletcher Cook AT&T Inc. Phone: 214-912-8541 Email: [email protected]
Daphne Avila AT&T Inc. Phone: 972-266-3866 Email: [email protected]