AT&T Inc. Announces Additional Early Repayment of Debt
August 18 2020 - 4:01PM
Business Wire
Company maintains commitment to high-quality
debt metrics
AT&T Inc.
(NYSE: T) continues to
proactively manage its capital structure by reducing upcoming
maturity towers.
AT&T has issued notices for the redemption in full of all
the outstanding principal amount of three series of bonds totaling
approximately $1.2 billion. When completed, the company will have
refinanced or repaid $19.4 billion of near-term debt obligations1
since the end of the second quarter through make-whole redemptions,
tender offers and repayment of scheduled maturities. Of this
amount, $8.2 billion will reduce the company’s debt maturing within
one year. By taking advantage of low borrowing costs and with
anticipated continued strong cash flow, the company’s future
near-term debt maturity towers are very manageable.
These redemptions are consistent with AT&T’s plans to
continue to improve its credit quality even as it remains committed
to supporting the dividend on its common stock and investing in
broadband connectivity and software-based entertainment. For
full-year 2020, AT&T expects its dividend payout ratio2 will be
in the 60% range and is targeting the low end of that range. This
gives the company the flexibility to continue to reduce its debt
levels during 2020.
1 Debt maturing in 2020 through 2025 excluding commercial paper.
2 Dividend payout ratio is total dividends paid divided by free
cash flow.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this news release contains
forward-looking statements that are subject to risks and
uncertainties, and actual results may differ materially. A
discussion of factors that may affect future results is contained
in AT&T’s filings with the Securities and Exchange Commission
and the prospectus and preliminary prospectus supplement related to
the Offering. AT&T disclaims any obligation to update or revise
statements contained in this news release based on new information
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200818005715/en/
McCall Butler AT&T Corporate and Financial Communications
Phone: 470-773-5704 Email: mb8191@att.com
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