Company maintains commitment to high-quality debt metrics
AT&T has issued notices for the redemption in full of all the outstanding principal amount of three series of bonds totaling approximately $1.2 billion. When completed, the company will have refinanced or repaid $19.4 billion of near-term debt obligations1 since the end of the second quarter through make-whole redemptions, tender offers and repayment of scheduled maturities. Of this amount, $8.2 billion will reduce the company’s debt maturing within one year. By taking advantage of low borrowing costs and with anticipated continued strong cash flow, the company’s future near-term debt maturity towers are very manageable.
These redemptions are consistent with AT&T’s plans to continue to improve its credit quality even as it remains committed to supporting the dividend on its common stock and investing in broadband connectivity and software-based entertainment. For full-year 2020, AT&T expects its dividend payout ratio2 will be in the 60% range and is targeting the low end of that range. This gives the company the flexibility to continue to reduce its debt levels during 2020.
1 Debt maturing in 2020 through 2025 excluding commercial paper.
2 Dividend payout ratio is total dividends paid divided by free cash flow.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this news release contains forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission and the prospectus and preliminary prospectus supplement related to the Offering. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.
AT&T Corporate and Financial Communications