AT&T Wireless 2015 Annual Report Download - page 33

AT&T INC. | 31
At December31,2015, we had $7,636 of debt maturing
within one year, substantially all of which was related to
long-term debt issuances. Debt maturing within one year
includes the following notes that may be put back to us
by the holders:
• $1,000 of annual put reset securities issued by
BellSouth Corporation that may be put back to us
each April until maturity in 2021.
• An accreting zero-coupon note that may be redeemed
each May until maturity in 2022. If the zero-coupon
note (issued for principal of $500 in 2007) is held to
maturity, the redemption amount will be $1,030.
Our Board of Directors has approved repurchase
authorizations of 300 million shares each in 2013 and
2014 (see Note 14). For the year ended December31,2014,
we had repurchased approximately 48 million shares totaling
$1,617 under these authorizations and for the year ended
December31,2015, we had repurchased approximately
8million shares totaling $269 under these authorizations.
At December 31, 2015 we had approximately 407 million
shares remaining from the 2013 and 2014 authorizations.
The emphasis of our 2016 financing activities will be the
issuance of debt, the payment of dividends, which is subject
to approval by our Board of Directors, and the repayment
of debt. We plan to fund our financing uses of cash through
a combination of cash from operations, debt issuances and
asset sales. The timing and mix of debt issuance will be
guided by credit market conditions and interest rate trends.
Credit Facilities
On December 11, 2015, we entered into a five-year,
$12,000 credit agreement (the “Revolving Credit
Agreement”) with Citibank, N.A. (Citibank), as administrative
agent, replacing our $5,000 credit agreement that would
have expired in December 2018. At the same time, AT&T
and the lenders terminated their obligations under the
existing revolving $3,000 credit agreement with Citibank
that would have expired in December2017.
In January 2015, we entered into a $9,155 credit agreement
(the “Syndicated Credit Agreement”) containing (i)a $6,286
term loan facility (the “Tranche A Facility”) and (ii)a $2,869
term loan facility (the “Tranche B Facility”), with certain
investment and commercial banks and MizuhoBank,Ltd.
(“Mizuho”), as administrative agent. We also entered into
a $2,000 18-month credit agreement (the “18-Month Credit
Agreement”) with Mizuho as initial lender and agent. On
December11,2015, AT&T amended the Syndicated Credit
Agreement and the 18-Month Credit Agreement to, among
other things, revise the financial covenant to match the
financial covenant in the Revolving Credit Agreement.
2020 and variable rate 18-month credit agreement
due 2016, together totaling $11,155.
• March 2015 issuance of €1,250 of 1.300% global notes
due 2023 and €1,250 of 2.450% global notes due
2035 (together, equivalent to $2,844, when issued).
• May 2015 issuance of $3,000 of 2.450% global notes
due 2020; $2,750 of 3.000% global notes due 2022;
$5,000 of 3.400% global notes due 2025; $2,500 of
4.500% global notes due 2035; $3,500 of 4.750%
global notes due 2046; and $750 floating rate global
notes due 2020. The floating rate for the note is based
upon the three-month London Interbank Offered Rate
(LIBOR), reset quarterly, plus 93 basis points.
During 2015, we redeemed $10,042 in debt, primarily
consisting of the following repayments:
• Redemption of $902 of various senior notes in
connection with the January 2015 GSF Telecom
acquisition and April 2015 Nextel Mexico acquisition.
• April2015 redemption of €1,250 (approximately
$1,975 at maturity) of AT&T 6.125% notes due 2015.
• August 2015 redemption of $1,500 of AT&T 2.500%
notes due August 2015.
• September2015 redemption of $1,000 of 0.800% notes
due December2015; $1,000 of 0.900% AT&T notes due
February2016; $750 of 3.125% DIRECTVHoldingsLLC
and DIRECTVFinancing Co., Inc. notes due February
2016; and $1,500 of 3.500% of DIRECTV senior notes
due March 2016.
• September 2015 prepayment of $1,000 of the
outstanding advances under the $2,000 18-month
credit agreement (the “18-Month Credit Agreement”)
by and between AT&T and Mizuho. (See the “Credit
Facilities” discussion below.)
In 2015, we continued to take advantage of lower market
interest rates and undertook several activities related to
our long-term debt which caused our weighted average
interest rate of our entire long-term debt portfolio,
including the impact of derivatives, to decrease from
4.2% at December31,2014 to 4.0% at December31,2015.
We had $124,847 of total notes and debentures outstanding
(see Note 9) at December31,2015, which included
Euro, British pound sterling, Swiss franc, Brazilian real and
Canadian dollar denominated debt of approximately $26,221.
On February 9, 2016, we issued $6,000 of long-term debt
which included:
• $1,250 of 2.800% global notes due 2021.
• $1,500 of 3.600% global notes due 2023.
• $1,750 of 4.125% global notes due 2026.
• $1,500 of 5.650% global notes due 2047.