By Chelsey Dulaney
AT&T Inc. said Thursday that it has entered into two credit
pacts worth a total of more than $11 billion as the company beefs
up its balance sheet to fund its bids for U.S. wireless
spectrum.
A $9.2 billion pact includes one $6.29 billion term loan
facility and one $2.87 billion term loan facility, according to
regulatory documents. AT&T has also entered into a $2 billion
18-month credit agreement with Mizuho Bank Ltd.
Wireless providers are expecting to spend billions of dollars in
coming years in government-run wireless spectrum auctions as they
seek to bulk up their networks.
Companies have been lining up extra cash for the most recent
spectrum auction, which turned unexpectedly hot in November as
carriers aggressively bid to line up the airwaves they'll need to
cover booming demand for wireless Internet as Americans watch more
videos, stream more music and spend more time surfing the Web on
their phones and tablets.
In November, AT&T offered EUR3.8 billion of bonds earmarked
for general corporate purposes.
AT&T and Verizon Communications Inc., the two largest U.S.
wireless providers, may face limits to how much spectrum they are
allowed to purchase, as government regulators try to keep smaller
providers T-Mobile US Inc. and Sprint Corp. competitive against
their larger rivals.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Access Investor Kit for AT&T, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US00206R1023
Access Investor Kit for Verizon Communications, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US92343V1044
Subscribe to WSJ: http://online.wsj.com?mod=djnwires