AT&T Inc. (T:US), the largest U.S. phone company, is planning to sell $2 billion in five-year notes as soon as today.
The Dallas-based communications provider may issue $1.6 billion in fixed-rate 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 a person with knowledge of the offering.
The debt, proceeds of which may be used for general corporate purposes, is expected to be rated A3 by Moody’s Investors Service said the person, who asked not to be identified because terms aren’t set. Citigroup Inc. and Mizuho Financial Group Inc. are managing the deal.
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, to yield 80 basis points more than similar-maturity Treasuries.
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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