AT&T to Sell Global Notes

AT&T will sell a new issue of Global Notes in baby bond form due in 2067.  No doubt these will be solidly investment grade.

Currently the company has another issue of Global Notes outstanding with a coupon of 5.35% and the share price has dropped in response to the new notes. Info on the older issue can be found here.

The company will use the proceeds for general corporate purposes.

This will be a decent issue for conservative investors as long as they realize that the price may move quite a lot if we get higher interest rates.

The preliminary prospectus can be read here.

Of course being debt the interest payments will not be qualified payments.


18 thoughts on “AT&T to Sell Global Notes”

  1. The common is getting wacked due to earnings release yesterday not sure it is just the debt

    1. Numbers didn’t seem that bad out of T, they weren’t just as good as VZ reported. Plus, you have the ‘additional debt’ announcement with this issue, plus, the SA bears flooding articles out one after another.

      Not a good day for the T longs.

  2. TBB is taking a hit.. down .66 at 1230 to 24.35.. the T common getting clobbered as well, may break 30 again.. wow. I think all this “debt” is making people nervous. Bea

    1. Haven’t reviewed T’s numbers for years, but the Time-Warner acquisition is pretty questionable (in my uninformed opinion).

      1. This is not 1978 and this isnt the AT&T of days gone by. Only the name is the same. A debt monster and some troubling declining revenue streams reported. Loading up bigly on T debt and calling it a day, would not be a prudent conservative decision IMHO.

        1. KTBA (I am long) is the best house in a broken down and broken dream neighborhood. Let’s chat about it in a decade after I’ve collected all the income. Wishing you profitable investing, Nomad

          1. Nomad, one thing is certain. If one would have bought KTBA and held instead of T common in 2001 they would be sitting on a considerable more amount of cash… Or 2008 ….Or 52 weeks ago…..

    2. Just saw that Bea.. Haven’t looked but I think TBB has been that low earlier this year or close to it before bouncing back..

  3. Well, the last thing AT&T needs to do is issue more debt. Be interesting to see what the coupon is. At some point, investor should be looking for higher coupon rates from AT&T if they keep increasing debt

  4. I bought a nice chunk of KTBA (thanks Gridbird) @ $27.81 earlier this year. Glad I did. I also have a 500 shares of TBB (another T Global Notes).. much lower coupon rate but still IG, which is fine by me. I would like to swap TBB for more KTBA.. Can’t imagine this newer T global notes be more than TBB’s coupon rate. Curious to see.

    1. I have noticed Grid yakking about this one off and on—but the 2095 maturity date is a bit frightening.

      1. Tim, I dont know about you, but 2067 or 2095 maturity date, I am dead either way, despite eating a lot of oatmeal and BP of 104/68, lol.

      2. Tim.. lol.. Grid yakking.. 2095 is far out there as is TBB (2066).. For me, and my thinking at this point in time is to just let it ride. I don’t foresee myself needing the cash from these securities and can see at my end of life handing this and other securities to my wife and daughter. EBAYL is another (2056) that I own. EBAYL has been consistently over $26 trading since inception and I bought in at $25. What is it that concerns you with the long maturity date? After my retirement in early 2016 I got into investing in preferreds, ETDs, and fixed income in general for obvious reasons. So, I am always learning and will until I can’t..

        1. Just the volatility in share price (potential). I still like the term preferreds and short dated baby bonds for price stability.

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