AT&T Inc., the second-largest U.S. wireless carrier, is planning to sell bonds in a benchmark offering to help pay back some of the $3.25 billion of outstanding debt that comes due this year.

     AT&T may issue five-, 10- and 30-year debentures as soon as today, according to a person familiar with the offering. Proceeds may be used for general corporate purposes as well as repayment of its outstanding bonds, said the person, who declined to be identified because terms aren't set. Benchmark offerings are typically at least $500 million.

     Corporate bond offerings are showing signs of life, with borrowers from Occidental Petroleum Corp. to San Diego Gas & Electric Co. joining Dallas-based AT&T in tapping the market as yields on investment-grade debt hover at about the lowest on record. Sales rose 43 percent last week to $12.1 billion after falling to the lowest since June during the period ended Aug. 5, according to data compiled by Bloomberg.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.