The Investor
04 Nov 2025, 06:15
AT&T secures $29.5 billion in new credit and term loan facilities
AT&T Inc. (NYSE: T) announced on November 3, 2025, that it has entered into two major financing agreements totaling $29.5 billion to enhance liquidity and support general corporate purposes, including potential spectrum acquisitions.
The company signed a $12 billion Second Amended and Restated Revolving Credit Agreement with Citibank as agent, replacing its previous 2022 facility. The revolving credit line matures in November 2030, with options for two one-year extensions and potential expansion up to $14 billion. Borrowings will accrue interest based on SOFR, EURIBOR, or SONIA benchmarks plus a margin tied to AT&T’s credit ratings (currently BBB/Baa2/BBB+), resulting in an applicable margin of 0.92% and a facility fee of 0.08%. The agreement includes a net debt-to-EBITDA covenant of 3.75x and standard cross-acceleration, lien, and bankruptcy default provisions.
Additionally, AT&T entered into a $17.5 billion Delayed Draw Term Loan Credit Agreement with Bank of America as agent, comprising a $6 billion 364-day term loan and an $11.5 billion two-year term loan. Both facilities can be drawn once before November 3, 2026, and will bear interest based on SOFR or base rate options, with margins ranging from 0.45% to 1.18% depending on credit ratings.
These new facilities provide AT&T with significant financial flexibility ahead of major capital investments, reinforcing its balance sheet strength while maintaining its commitment to investment-grade credit metrics.
AT&T Inc. (NYSE: T) announced on November 3, 2025, that it has entered into two major financing agreements totaling $29.5 billion to enhance liquidity and support general corporate purposes, including potential spectrum acquisitions.
The company signed a $12 billion Second Amended and Restated Revolving Credit Agreement with Citibank as agent, replacing its previous 2022 facility. The revolving credit line matures in November 2030, with options for two one-year extensions and potential expansion up to $14 billion. Borrowings will accrue interest based on SOFR, EURIBOR, or SONIA benchmarks plus a margin tied to AT&T’s credit ratings (currently BBB/Baa2/BBB+), resulting in an applicable margin of 0.92% and a facility fee of 0.08%. The agreement includes a net debt-to-EBITDA covenant of 3.75x and standard cross-acceleration, lien, and bankruptcy default provisions.
Additionally, AT&T entered into a $17.5 billion Delayed Draw Term Loan Credit Agreement with Bank of America as agent, comprising a $6 billion 364-day term loan and an $11.5 billion two-year term loan. Both facilities can be drawn once before November 3, 2026, and will bear interest based on SOFR or base rate options, with margins ranging from 0.45% to 1.18% depending on credit ratings.
These new facilities provide AT&T with significant financial flexibility ahead of major capital investments, reinforcing its balance sheet strength while maintaining its commitment to investment-grade credit metrics.