ATC Music Group plc Regulatory News (ATC)

7 Mar 2005 13:11

AT&T Announces Tender Offer for Up to $1.25 Billion of its 7.30% Notes Due 2011 BEDMINSTER, N.J., March 7 / -- AT&T (NYSE: T) announced today that it has commenced a cash tender offer for up to $1.25 billion in aggregate principal amount of its outstanding 7.30% Notes due 2011 (CUSIP Nos. 001957BC2, 001957AZ2, U03017BB2) (currently carrying an interest rate of 9.05%). The tender offer is set forth in an offer to purchase dated March 7, 2005. The total consideration payable for notes validly tendered will be determined by reference to a fixed spread of 150 basis points over the bid side yield (as quoted on Bloomberg PX1 on the price determination date at 2:00 p.m. Eastern Time) of the U.S. Treasury 4.0% note due Feb. 15, 2015, calculated to the maturity date of the notes, as fully described in the offer to purchase. The price determination date is expected to be March 21, 2005. The total consideration includes an early tender premium of $15 per $1,000 principal amount of notes (the "Early Tender Premium") payable only to holders of notes that validly tender and do not validly withdraw such notes before 5:00 p.m. ET on March 18, 2005 (the "Early Tender Date"). The tender offer will expire at midnight ET, on April 4, 2005, unless extended or earlier terminated (the "Expiration Date"). Upon consummation of the tender offer, holders that validly tender and do not validly withdraw their notes will receive accrued and unpaid interest to, but not including, the settlement date. The settlement date is expected to be two business days following the Expiration Date. The offer to purchase is not contingent upon the tender of a minimum principal amount of notes, but if the aggregate principal amount of notes validly tendered and not properly withdrawn exceeds $1.25 billion, AT&T will accept notes for purchase on a pro rata basis based on the principal amount of notes tendered. Subject to and in accordance with applicable law, the company reserves the right to amend the offer to purchase. AT&T has retained Merrill Lynch & Co. and UBS Securities LLC to serve as dealer managers for the tender offer, and Global Bondholder Services Corporation to serve as the information agent and the depositary. Copies of the offer to purchase and related documents may be obtained at no charge by contacting the information agent and depositary by telephone at (866) 924-2200 (toll-free) or (212) 430-3774. These documents contain important information, and holders should read them carefully before making any investment decision. Questions regarding the tender offer may be directed to: Merrill Lynch & Co. at (888) 654-8637 (toll free) and UBS Securities LLC at (888) 722-9555 ext. 4210 (toll-free). This announcement does not constitute an offer to purchase or a solicitation of an offer to sell securities. The tender offer is being made solely by the offer to purchase. In any jurisdiction where the laws require tender offers to be made by a licensed broker or dealer, the tender offer will be deemed to be made on behalf of AT&T by the dealer managers, or one or more registered brokers or dealers under the laws of such jurisdiction. About AT&T AT&T (http://www.att.com) For more than 125 years, AT&T (NYSE "T") has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services. (Logo: http://www.newscom.com/cgi-bin/prnh/19991018/ATT ) SOURCE AT&T 03/07/2005 /CONTACT: Tracey Belko of AT&T, 908-234-6842/ /Photo: http://www.newscom.com/cgi-bin/prnh/19991018/ATT / /Web site: http://www.att.com / (T) END