AT&T Taps High-Grade Bond Market to Sell $5 Billion of Bonds

Core Viewpoint - AT&T Inc. is planning to sell at least $4 billion of investment-grade debt to finance its recent $23 billion investment in network expansion [1][3]. Group 1: Debt Issuance Details - The telecommunications company is offering notes in up to four parts, with the longest being a 29-year note expected to yield approximately 1.3 percentage points over Treasuries [1]. - Proceeds from the bond sale will be utilized for general corporate purposes, including upcoming debt maturities and pending acquisitions [2]. Group 2: Context of the Deal - The bond sale follows AT&T's agreement to purchase spectrum licenses from EchoStar Corp. for about $23 billion, which AT&T plans to finance through a mix of cash on hand and borrowings [3]. - In May, AT&T also sold $3.5 billion of bonds, indicating a proactive approach to managing its capital structure [3]. Group 3: Market Environment - The bond sale occurs as eight other companies are also looking to sell high-grade debt, following a pause in the primary market due to the Federal Reserve's first rate cut in nearly a year [4].