WarnerMedia Parent AT&T Raising More Than $3 Billion In Debt Sale

Jill Goldsmith
·2 min read

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WarnerMedia parent AT&T is raising €3 billion (about $3.28 billion) in a note sale and will use the cash for general corporate purposes, which may include debt repayments.

It announced the sale of three tranches of notes (or bonds) for €1.75 billion, €750 million and €500 million, respectively, in an SEC filing.

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AT&T and other media and entertainment companies have been raising cash amidst an uncertain business climate. In April, the company announced it had set up a new $5.5 billion loan agreement at competitive rates with 12 banks to provide it with additional financial flexibility. The loans are pre-payable without penalty, it said, as it seeks to reassure the markets and employees it’s on solid ground in uncertain COVID-19 times.

AT&T took on significant debt with its acquisition of Time Warner for $85 billion in 2018 and has been trying to pare it down. The coronavirus pandemic has posed a challenge for highly leveraged companies. Debt topped $150 billion at the end of 2019.

AT&T’s latest quarterly earnings on April 22 showed a jump in wireless subscribers but a hit at WarnerMedia, squeezed by zero theatrical revenue and a dip in advertising driven in part by a lack of live sports. It’s biggest bet, streaming service HBO Max, is set to launch May 27. Streaming pioneer and Hulu co-founder Jason Kilar started as CEO of WarnerMedia this month ahead of the launch.

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