AT&T Inc. Completes Third-Largest Corporate Bond Sale on Record

August 7, 2017

AT&T Inc. issued an aggregate principal amount of $22.5 billion of debt securities—ranking as the third-largest corporate bond sale on record. The offering consisted of an issuance of seven series of its notes in the following aggregate principal amounts: $1.750 billion aggregate principal amount of its 2.850% global notes due 2023, $3 billion aggregate principal amount of its 3.400% global notes due 2024, $5 billion aggregate principal amount of its 3.900% global notes due 2027, $4.500 billion aggregate principal amount of its 4.900% global notes due 2037, $5 billion aggregate principal amount of its 5.150% global notes due 2050, $2.500 billion aggregate principal amount of its 5.300% global notes due 2058 and $750 million aggregate principal amount of its floating rate global notes due 2023.
 
All notes are subject to a special mandatory redemption at 101 percent of the principal amount of the notes plus accrued but unpaid interest if the merger agreement with Time Warner is terminated or the acquisition of Time Warner does not close by April 22, 2018. The proceeds from the sale of the notes under both offerings are being used for general corporate purposes, including funding the cash consideration for the Time Warner acquisition.
 
The notes were sold under a shelf registration statement that AT&T had filed with the SEC on February 25, 2016. S&C represented the representatives of the several underwriters, along with a syndicate of 21 other banks. AT&T is a worldwide leader in telecommunications services with a market capitalization of more than $230 billion.
 
The S&C team for the issuance of the notes was led by Patrick Brown, James Shea, Sarah Wilson, Kyra Ayo Caros and Emily Yi. Jeffrey Hochberg, Saul Brander and Andrew Motten advised on tax matters.