AT&T Sells 2 Billion Euros of Bonds to Fund Tender Offer in U.S.

AT&T Inc. (T) sold 2 billion euros ($2.7 billion) of bonds to help fund tender offers for as much as $6 billion of dollar-denominated notes.

The largest U.S. phone company issued 1 billion euros each of 2.65 percent securities due in December 2021 that pay 95 basis points more than the mid-swap rate and 3.5 percent, 12-year notes yielding 130 more than benchmarks, according to data compiled by Bloomberg. The securities are expected to be rated A3 by Moody’s Investors Service.

AT&T is seeking to redeem notes including $896 million of 8.75 percent securities due in 2031 and linked to its New Cingular Wireless unit, according to a statement. That’s one of 24 debt securities that make up the tender offers.

AT&T sold 1.25 billion euros of 2.5 percent bonds in March that mature in 10 years, Bloomberg data show. Those notes, ranked A3 by Moody’s and an equivalent A- at Standard & Poor’s, traded at 97.69 cents on the dollar yesterday to yield 2.78 percent.

To contact the reporter on this story: Charles Mead in New York at

To contact the editor responsible for this story: Alan Goldstein at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.