Summary
AT&T Inc. (T), through its subsidiary Pacific Bell Telephone Company, has announced the irrevocable notice to redeem all outstanding 6.625% Debentures due October 15, 2034. The redemption is scheduled for October 15, 2013, with a redemption price of 101.12% of the principal amount. This action aims to retire approximately $550 million in debt, with an estimated total cash outlay of $556 million, including a call premium of $6 million. The company expects to fund this redemption using existing cash on hand. This move signifies AT&T's proactive approach to managing its debt obligations and potentially optimizing its capital structure. Investors should note that the redemption of this specific debt issuance will reduce AT&T's overall outstanding debt and associated interest expenses.
Key Highlights
- 1AT&T subsidiary Pacific Bell Telephone Company issued notice to redeem all 6.625% Debentures due 2034.
- 2The redemption date is set for October 15, 2013.
- 3The redemption price is 101.12% of the principal amount.
- 4Approximately $550 million in principal is being redeemed.
- 5The total cash payment for the redemption is expected to be around $556 million, including a $6 million call premium.
- 6The redemption will be funded by AT&T's existing cash on hand.