AT&T Wireless 2015 Annual Report Download - page 62

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
60 | AT&T INC.
Current maturities of long-term debt include debt that may
be put back to us by the holders in 2016. We have $1,000
of annual put reset securities that may be put each April
until maturity in 2021. If the holders do not require us to
repurchase the securities, the interest rate will be reset based
on current market conditions. Likewise, we have 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.
Debt maturing within one year consisted of the following at
December 31:
2015 2014
Current maturities of long-term debt $7,632 $6,051
Bank borrowings1 4 5
Total $7,636 $6,056
1 Outstanding balance of short-term credit facility of a foreign subsidiary.
Financing Activities
During 2015, we issued $33,969 in long-term debt in various
markets, with an average weighted maturity of approximately
12 years and a weighted average coupon of 2.7%. We
redeemed $10,042 in borrowings of various notes with
stated rates of 0.80% to 9.10%.
During 2015 we completed the following long-term debt
issuances:
• February 2015 issuance of $2,619 of 4.600% global
notes due 2045.
• March 2015 borrowings under a variable rate term loan
facility due 2018, variable rate term loan facility due
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.
On February 9, 2016, we completed the following long-term
debt issuances:
• $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.
As of December 31, 2015 and 2014, we were in compliance
with all covenants and conditions of instruments governing
our debt. Substantially all of our outstanding long-term
debt is unsecured. Maturities of outstanding long-term
notes and debentures, as of December 31, 2015, and the
corresponding weighted-average interest rate scheduled
for repayment are as follows:
There-
2016 2017 2018 2019 2020 after
Debt
repayments1 $7,383 $7,789 $13,058 $7,863 $9,459 $83,891
Weighted-
average
interest rate 2.8% 2.3% 3.5% 3.9% 3.2% 4.8%
1 Debt repayments assume putable debt is redeemed by the holders at the next
opportunity.
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.
Revolving Credit Agreement
In the event advances are made under the Revolving
Credit Agreement, those advances would be used for
general corporate purposes. Advances are not conditioned
on the absence of a material adverse change. All advances
must be repaid no later than the date on which lenders
are no longer obligated to make any advances under the
agreement. We can terminate, in whole or in part, amounts
committed by the lenders in excess of any outstanding
advances; however, we cannot reinstate any such terminated
commitments. We also may request that the total amount
of the lender’s commitments be increased by an integral
multiple of $25 effective on a date that is at least 90 days
prior to the scheduled termination date then in effect,
provided that no event of default has occurred and in no