AT&T INC. ANNOUNCES ADDITIONAL EARLY REPAYMENT OF DEBT
Company maintains commitment to high-quality debt metrics
AT&T has issued notices for the redemption in full of all the outstanding principal amount of six series of bonds totaling approximately $4.3 billion and prepayment of term loans totaling $1.0 billion. The total principal of these prepayments is approximately $5.3 billion. When combined with recently announced repayment activity, and anticipated continued strong cash flow, the company’s future near-term debt maturity towers are very manageable.
This series of transactions is consistent with AT&T’s plans to continue improving its credit quality even as it remains committed to paying a dividend to its shareholders and investing in its growth areas — fiber, 5G and HBO Max. For full-year 2020, AT&T expects its dividend payout of free cash flow ratio will be in the 60% range. This gives the company the flexibility to continue to reduce its debt levels during 2020.