AT&T sells $1.15 billion; Schwab, Synovus tap primary market; high-grade spreads ease

By Cristal Cody

Tupelo, Miss., Oct. 25 – High-grade securities deal action on Wednesday included offerings from AT&T Inc., Charles Schwab Corp. and Synovus Financial Corp.

AT&T priced $1.15 billion of global notes due Nov. 1, 2066.

Charles Schwab sold $500 million of depositary shares that represent 1/100th of an interest in fixed-to-floating rate preferred stock.

Synovus Financial sold $300 million of five-year senior notes.

In other activity, Freddie Mac announced it would not issue notes on its Oct. 25 announcement date.

The Markit CDX North American Investment Grade 29 index eased more than 1 basis point on Wednesday to a spread of 54 bps.

In its deal, AT&T priced $1.15 billion of 5.35% $25-par global notes due Nov. 1, 2066 on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes were initially talked to price in the 5.375% to 5.5% area.

The bookrunners were BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, RBC Capital Markets, LLC and UBS Securities LLC.

The deal includes an over-allotment option of $172.5 million.

AT&T expects to apply to list the notes on the New York Stock Exchange.

Proceeds will be used for general corporate purposes.

AT&T is a Dallas-based telecommunications company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.