AT&T has issued notices for the redemption in full of all the outstanding principal amount of six series of bonds totaling approximately $4.3 billion and prepayment of term loans totaling $1.0 billion. The total principal of these prepayments is approximately $5.3 billion. When combined with recently announced repayment activity, and anticipated continued strong cash flow, the company’s future near-term debt maturity towers are very manageable.
This series of transactions is consistent with AT&T’s plans to continue improving its credit quality even as it remains committed to paying a dividend to its shareholders and investing in its growth areas — fiber, 5G and HBO Max. For full-year 2020, AT&T expects its dividend payout of free cash flow ratio will be in the 60% range. This gives the company the flexibility to continue to reduce its debt levels during 2020.
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.