AT&T Sets Another $4 Billion Accelerated Stock Buyback
March 04 2020 - 6:53AM
Dow Jones News
By Colin Kellaher
AT&T Inc. said it will retire $4 billion of its common stock
beginning in the second quarter through an accelerated
share-repurchase agreement with Morgan Stanley.
The Dallas telecommunications and media giant said the buyback
follows a similar transaction under which it is retiring $4 billion
of shares in the current quarter.
AT&T, which previously said it would use 50% to 70% of free
cash flow after dividends to retire roughly 70% of the shares it
issued to fund its $85 billion acquisition of Time Warner by the
end of 2022, said the two accelerated buybacks, coupled with
open-market repurchases, will bring total shares retired so far
this year to more than 250 million through April.
AT&T, which has more than seven billion common shares
outstanding, sports a market capitalization of about $260 billion
based on Tuesday's closing price of $36.30.
The company said it has raised $4 billion so far this year
through the issuance of preferred shares as it continues to add
preferred equity to its capital structure while reducing its common
shares outstanding.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 04, 2020 06:38 ET (11:38 GMT)
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