(Bloomberg) -- AT&T Inc. is making good on its promise to tackle its $171 billion debt load.
The telecom carrier is refinancing outstanding debt by selling senior unsecured bonds in as many as two parts, according to a person with knowledge of the matter. The longest portion of the offering, a 20-year security, may yield around 2.375 percentage points above Treasuries, said the person, who asked not to be identified as the details are private.
The largest non-financial issuer of corporate debt, AT&T has made debt reduction its “top priority” for this year. The proceeds of Wednesday’s sale, along with cash on hand, will go toward repaying some bonds issued by AT&T as well as subsidiaries of DirecTV, which AT&T bought in 2015 for $49 billion. Since then, AT&T’s pay-TV division, led by DirecTV, has continued to lose customers to online streaming services like Netflix Inc.
BNP Paribas SA, Goldman Sachs Group Inc., Morgan Stanley and Wells Fargo & Co. are managing the bond sale, the person said.
--With assistance from Allan Lopez.
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