WarnerMedia Guardian firm A&T stated on Tuesday it had put in place a brand new $ 5.5 billion mortgage settlement at aggressive charges with 12 banks to offer extra monetary flexibility to its “already robust money place.” The loans are prepayable with out penalty, he stated, as he seeks to reassure markets and staff that he’s constructing a stable basis in these unsure instances.
The corporate stated it’s going to present extra data on the impacts of COVID-19 on its monetary and working outcomes throughout its first quarter earnings name on April 22. Will probably be the primary main media firm to launch outcomes and hopefully present some readability for the present quarter. Companies scrambled final week to withdraw monetary recommendation provided in February earlier than the dramatic affect of the virus grew to become obvious.
AT&T additionally famous that he has entry to a totally dedicated $ 15 billion gun mortgage already in place that he doesn’t want or intend to attract in 2020 – however he’s there in case.
AT&T is the newest main media firm to increase its money cushion to hedge towards financial dangers and the unknowns of the coronavirus pandemic. Disney, Comcast, ViacomCBS and Fox just lately raised practically $ 14 billion by promoting debt securities. Some corporations like Discovery and AMC Leisure have used their revolving strains of credit score. Others, like AMC Networks, have reassured buyers that they’ve a a lot wanted gun – within the case of AMC Community, entry to $ 500 million has but to be tapped.
In an announcement, AT&T additionally provided a monetary replace as we speak, highlighting its monetary energy factors, together with a robust steadiness sheet and enticing liquidity. He stated he had about $ 12 billion in money as of Dec.31 and acquired about $ 4 billion from the sale of most popular shares in February. It additionally finalized a share buyback in March, however has now stopped all share buybacks.
Sooner or later, the corporate, which plans to deploy HBO Max subsequent month, stated he expects the next to place him in the correct place:
• The energy and relevance of the core subscription enterprise, the continued execution of enterprise transformation initiatives and the scaling of operations primarily based on financial exercise will present liquidity from operations that can help investments within the enterprise. community, dividend funds and debt reimbursement, in addition to the flexibility to put money into enterprise alternatives that come up as economies get better.
• Roughly $ 2 billion from the deliberate closing later in 2020 of the beforehand introduced divestiture of CME, in addition to extra proceeds from plenty of different actual property and tower gross sales.
• The corporate expects to finish the sale of its Puerto Rico and US Virgin Islands operations later this 12 months and intends to make use of the proceeds to take away an excellent most popular curiosity.
• Ongoing entry to business paper, bond markets and different financing actions which, as prior to now, will probably be used as a part of regular financing actions relying on value, length and common market situations .
• As prior to now 36 years, the corporate pays a quarterly dividend to shareholders. .
AT&T added that its pension fund doesn’t require any short-term money movement and that it doesn’t count on any required contributions till 2022. The plan allotted nearly the entire remaining belongings to fastened earnings securities, most popular securities and different investments whose returns are a lot much less impacted. by present inventory markets.
He additionally burdened that he believes his publicity to short-term tools shortages is restricted given a geographically numerous provide chain.