AT&T is issuing $3.27 billion in new debt, boosting its liquidity as the coronavirus pandemic continues to impact the company's businesses
AT&T is issuing €3 billion in new debt, boosting its liquidity as the novel coronavirus pandemic continues to impact the company's businesses. In a prospectus, the telecom giant said it will use cash from the offering for general corporate purposes, including the potential to pay down existing debt.
AT&T already has a heavy debt load, holding more than $150 billion in debt at the end of 2019. Last month it entered into a $5.5 billion term loan agreement to give it "financial flexibility" amid the pandemic. The new European debt offering is being sod in three tranches: a €1.75 billion note with 1.6 percent interest due in 2028, a €750 million note with 2.05 percent interest due in 2032, and a €500 million note with 2.6 percent interest due in 2038.
The company's communications, broadband and enterprise businesses continue to drive revenue and incoming CEO John Stankey told analysts on the company's last earnings call "they also provide a foundation that can absorb pressure from the other parts of the business that are facing headwinds because of COVID-19." That includes AT&T's media business.
Still, the company said in its last earnings report that paying down debt remains a top priority. "The message we really we want to give to you right now is that we can continue to invest and continue to paying out our debt and continue to pay our dividend all in a very flexible environment," CEO Randall Stephenson said at the time.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Walt Disney’s 'dream house' in Palm Springs sells for the asking priceA Palm Springs home built for Walt Disney and his wife Lillian in 1962 has sold for $1.095 million.
Read more »
NFL’s Charles Woodson sells Florida home of 22 yearsIn Orlando, Fla., NFL great Charles Woodson has sold his two-story home of 22 years for $670,000.
Read more »
Kim Kardashian West Launches A Line Of Face Masks—And Sells Out Almost ImmediatelyKim Kardashian West launched a line of face masks—and it sold out almost immediately
Read more »
SoftBank is selling part of its T-Mobile stake in a secondary offeringMorgan Stanley and Goldman Sachs will underwrite the offering, sources told CNBC.
Read more »
Alibaba, T-Mobile Shares To Be Sold as Softbank Losses Approach $15 BillionJapanese tech investor, Softbank is poised to sell large chunks of its share stakes in T-Mobile U.S. and Chinese e-commerce giant Alibaba. Softbank revealed annual losses of $14.8 billion, includin…
Read more »
WSJ News Exclusive | SoftBank Plans to Seek Buyers for About $20 Billion of its T-Mobile SharesThe Japanese conglomerate’s plan to sell about $20 billion of its shares in T-Mobile US represents what would be one of the largest stock trades ever.
Read more »