AT&T Inc. said Thursday that it has entered into a $9.2
billion credit pact as the company beefs up its balance sheet to
fund its bids for U.S. wireless spectrum.
The pact includes one $6.29 billion term-loan facility and one
$2.87 billion term-loan facility, according to regulatory
documents. AT&T also has entered into a $2 billion 18-month
credit agreement with Mizuho Bank Ltd.
Wireless providers are expecting to spend billions of dollars in
upcoming 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 will need to
cover booming demand for wireless Internet. Americans are watching
more videos, streaming more music and spending more time surfing
the Web on their phones and tablets.
In November, AT&T offered 3.8 billion euros 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
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