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T - AT&T Inc News Story

$30.99 0.1  0.2%

Last Trade - 02/06/20

Sector
Telecoms
Size
Large Cap
Market Cap £176.41bn
Enterprise Value £314.09bn
Revenue £143.41bn
Position in Universe 26th / 6317

AT&T takes on $5.5 billion loan to boost 'financial flexibility'

Tue 7th April, 2020 4:42pm
NEW YORK, April 7 (Reuters) - AT&T Inc.  T.N  on Tuesday
announced a $5.5 billion term-loan agreement, which it said
would give the company "financial flexibility" during the
coronavirus outbreak.
    The U.S. telecoms and media giant also reaffirmed its
commitment to pay a dividend, which helped send its shares up
2.8% in morning trading.
    AT&T has been targeted by shareholder activists over its
large debt load, accumulated over a buying spree that
transformed it into a media and telecoms conglomerate. It said
on its investor page that the new loan agreement, with five
banks, would "provide additional financial flexibility to an
already strong cash position."
    AT&T spent $85 billion on Time Warner in 2018. It bought
satellite TV service DirecTV for $49 billion in 2015, but the
unit has continued to bleed customers.
    Under pressure from shareholder Elliott Management, AT&T
announced a strategic plan in October to sell up to $10 billion
worth of businesses in three years. AT&T closed 2019 by reducing
its debt by $20.3 billion. 
    AT&T currently holds about $151 billion in long-term debt at
the end of 2019.  
    Last month, AT&T stopped its $4 billion share repurchase
plan as it re-evaluated the impact of the coronavirus on its
business.

 (Reporting by Arriana McLymore in North Carolina; Editing by
Dan Grebler)
 ((arriana.mclymore@thomsonreuters.com;))
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