In a filing with the US Securities and Exchange Commission, the funds will be available for AT&T to withdraw at any point before the 29 May 2021. AT&T will be able to use the funds to buy additional spectrum ‘among other things’.
The loan will mature 364 days after the loan has been borrowed and advances will bear interest either at a variable annual rate or a "eurodollar rate" equal to Libor plus an applicable margin.
The news follows reports that AT&T was in early stage talks with banks to raise approximately $14 billion to acquire more spectrum in light of the FCC’s 5G auction surpassing the estimated $47 billion goal and topped $80.9 billion, in its first phase.
Only last month AT&T published strong Q4 results. Consolidated revenues for the fourth quarter totalled $45.7 billion versus $46.8 billion in the same quarter the previous year.
At the same time, the telco recorded its best full year of post-paid phone net adds. 800,000 post-paid phone net adds, 1.5 million for full year; and 1.2 million post-paid net adds, 2.2 million for the full year with Q4 churn of 0.76%, its second-lowest quarter ever, and full-year churn of 0.79%. Domestic wireless services saw six million additions.
