AT&T seeks $5 billion bank loan to weather virus impact
AT&T Inc. is in discussions with banks for a new $5 billion term loan as it seeks alternative short-term financing options following a spike in commercial-paper costs, according to people familiar with the matter.
The talks are still in flux and details may change, said the people, who asked not to be named because the discussions are private. The phone and media giant, which has the highest debt load of any non-financial company in the U.S., was initially discussing a $3 billion loan last week.
AT&T also canceled its $4 billion accelerated share buyback plan Friday, less than a month after it was announced, as part of a broader effort to boost flexibility while financial markets continue to reel from the spreading coronavirus.
The loan is expected to be for less than a year and pricing is being discussed at 150 basis points over the London interbank offered rate, the people said. Pricing on AT&’s existing five-year revolver has a lower drawn margin of 112.5 basis points over Libor, according to a filing.
Read more: https://www.dallasnews.com/business/local-companies/2020/03/23/att-seeks-5-billion-bank-loan-to-weather-virus-impact/
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