Nov. 20 (Bloomberg) -- AT&T Inc., the largest U.S. phone company, sold $2 billion of five-year notes in fixed- and floating-rate portions.
The Dallas-based communications provider issued $1.6 billion in 2.375 percent bonds that yield 100 basis points more than similar-maturity Treasuries, and $400 million of floating-rate debentures paying 91 basis points more than the three-month London interbank offered rate, according to data compiled by Bloomberg.
The debt, proceeds of which may be used for general corporate purposes, is expected to be rated A3 by Moody’s Investors Service, Bloomberg data show. Citigroup Inc. and Mizuho Financial Group Inc. managed the offering.
AT&T’s $2 billion of 1.4 percent bonds due in December 2017 rose 1.4 cents on the dollar to 99.45 cents on Nov. 15, yielding 1.54 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The notes were sold Dec. 6, 2012, with an 80 basis-points relative yield.
Libor, the rate at which banks say they can borrow from each other, was fixed at 23.81 basis points today. A basis point is 0.01 percentage point.
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