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AT&T Inc. redeems bonds amounting to more than 17 billion USD

May 23, 2018 | Cbonds

Today, AT&T Inc, the US telecommunications company that has the largest annual revenue in the world, redeems bonds worth more than 17 billion USD ahead of schedule.

Redemption is carried out with respect to six issues denominated in USD (14.8 billion USD), four issues in EUR (1.15 billion EUR), and one issue in pounds sterling (1 billion pounds sterling). The rate of option for early repayment is 174 million dollars, and ACI is 412 million dollars. Thus, the total payment is 18.08 billion USD.

These bonds became mandatory for redemption in accordance with the special condition stipulated with respect to each issue. The trigger of the early redemption is a violation of the deadline for the completion of the merger with Time Warner Inc, a company engaged in the production of news and entertainment content (the transaction amount is 108 billion USD). As of April 22, the deal was not closed; as a result, the issuer shall be obligated to fully redeem all the above issues at 101% of the nominal value, as well as pay ACI.

The obstacle to the transaction completion is a lawsuit between AT&T and Time Warner, on the one hand, and the US Department of Justice, on the other. The ministry believes that the merger violates the antitrust laws of the United States of America and may lead to the overpricing of services, which will not contribute to innovation.

In its message, AT&T emphasizes that it has enough funds not only for early bond redemption but also for the completion of the transaction with Time Warner.

In 2017, AT&T took the second place in the global ranking of non-financial issuers prepared by Cbonds http://cbonds.ru/rankings/item/463. This year, the company placed 25 issues worth 47 billion USD, 11 of which will be redeemed today.

It should be noted that the redemption amount is comparable to 45% of Moscow's budget expenditures, 38% of CIS Eurobond placements in 2017, and twice as much as the Federal budget for education.

After the redemption of 11 issues, AT&T will have 105 issues in circulation worth 139 billion USD.

Company: AT&T Inc

Full company nameAT&T Inc
Country of riskUSA
Country of registrationUSA


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