Bloomberg News

AT&T 364-Day Revolver Reduced to $3 Billion From $5 Billion

January 16, 2012

(Updates with company comment in fourth paragraph.)

Jan. 13 (Bloomberg) -- AT&T Inc., the second-largest U.S. wireless carrier, reduced the size of its 364-day revolving line of credit to $3 billion from $5 billion, the company said today in a regulatory filing.

Citigroup Inc., JPMorgan Chase & Co., Barclays Plc and Bank of America Corp. arranged the debt for the Dallas-based company in December, according to data compiled by Bloomberg. The banks obtained commitments from 20 more lenders for the credit, the data show.

The revolver pays interest at 0.595 percentage points to 0.95 percentage points more than the London interbank offered rate based upon AT&T’s credit rating, the data show.

“We determined that $3 billion would be sufficient to meet our cash needs, should we ever need to access this line of credit, which is very unlikely.” McCall Butler, spokesman for AT&T, said in an e-mailed statement. “Our existing $5 billion, four-year agreement remains unchanged.”

On Dec. 19 AT&T extended for one-year a $5 billion four- year unsecured revolver that now matures in Dec. 2015. As of Sept. 30, AT&T had no borrowings under this facility, Bloomberg data show.

AT&T also announced today it will redeem all the outstanding 6.375 percent senior notes the company has due in February 2056, according to today’s filing. The $1.22 billion redemption is expected to be funded by cash on hand.

In a revolving credit facility, money can be borrowed once it’s repaid; in a term loan, it can’t.

--With assistance from Scott Moritz in New York. Editors: Faris Khan, John Parry

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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