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AT&T Inc. Announces Additional Early Repayment of Debt

Company maintains commitment to high-quality debt metrics

AT&T Inc. (NYSE: T) continues to proactively manage its capital structure and reduce upcoming maturity towers.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200624005836/en/

Contacts

Fletcher Cook
AT&T Inc.
Phone: 214-912-8541
Email: fletcher.cook@att.com

Daphne Avila
AT&T Inc.
Phone: (972) 266-3866
Email: daphne.avila@att.com