8-KOther EventsExhibits & Filings

AT&T INC. 8-K Report, Corporate Update (Dec 17, 2012)

Filed December 17, 2012For Securities:TT-PCTBBT-PA

Summary

AT&T Inc. (T) filed a Form 8-K on December 17, 2012, to report on the closing of its sale of €1,000,000,000 (approximately $1.3 billion) of 3.550% Global Notes due 2032. This debt issuance, completed under an underwriting agreement dated December 11, 2012, was registered under the Securities Act of 1933. The filing includes key documentation related to this debt offering, such as the underwriting agreement and the form of the note, which are incorporated by reference into the company's existing registration statement. For investors, this filing signals AT&T's continued reliance on debt markets to finance its operations and strategic initiatives. The issuance of long-term debt indicates management's strategy to potentially lock in favorable interest rates and manage its capital structure. While the specific use of proceeds is not detailed in this report, such debt issuances are typically used for general corporate purposes, capital expenditures, or refinancing existing debt. Investors should note the aggregate principal amount and the coupon rate as indicators of AT&T's cost of capital for this tranche of debt.

Key Highlights

  • 1AT&T Inc. closed the sale of €1 billion (approx. $1.3 billion) in 3.550% Global Notes due 2032 on December 17, 2012.
  • 2The debt issuance was completed under an underwriting agreement dated December 11, 2012, with Barclays Bank PLC and Merrill Lynch International as underwriters.
  • 3The Notes were issued under an indenture originally between SBC Communications Inc. (now AT&T Inc.) and The Bank of New York Mellon.
  • 4The issuance was registered under the Securities Act of 1933 via a Form S-3 Registration Statement.
  • 5This 8-K filing incorporates by reference the Underwriting Agreement and the Form of Global Note due 2032 as exhibits.
  • 6The filing also includes the legal opinion of AT&T's Senior Executive Vice President and General Counsel regarding the validity of the Notes.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the closing of AT&T's sale of €1 billion (approximately $1.3 billion) of its 3.550% Global Notes due 2032 and to file relevant documentation, such as the underwriting agreement and the form of the note, which are incorporated by reference into its existing registration statement.

The 3.550% interest rate represents the coupon rate AT&T will pay on the €1 billion in notes due 2032. This figure is an indicator of the cost of borrowing for AT&T at the time of issuance and can be compared to other debt instruments or historical rates to assess the company's cost of capital.

Investors can find more details about the terms of these notes by reviewing the exhibits filed with this 8-K, specifically the Underwriting Agreement dated December 11, 2012, and the Form of Global Note due 2032. These documents provide specific contractual terms and conditions related to the debt issuance.

This filing indicates AT&T's ongoing strategy of utilizing debt financing to manage its capital structure. Issuing long-term debt can be a method to fund operations, capital expenditures, or refinance existing debt, potentially at favorable rates. While this filing doesn't provide a full financial picture, it highlights the company's access to capital markets and its approach to funding.