AT&T Inc. (T) has successfully closed a $6 billion sale of long-dated notes, a move that underscores its continued commitment to expanding fiber broadband and 5G networks even as debt levels climb. The offering, finalized on April 30, includes maturities stretching from 2033 to 2066, according to a Form 8-K filing with the SEC.
The timing of the debt issuance is critical. AT&T is navigating a period of heavy capital expenditure—$23 billion to $24 billion is planned for 2026—while also preparing to close a roughly $23 billion acquisition of EchoStar’s spectrum licenses. The company expects to add about 30 MHz of mid-band 3.45 GHz spectrum and 20 MHz of low-band 600 MHz spectrum, covering virtually all U.S. markets.
First-quarter free cash flow totaled $2.5 billion, down from $3.1 billion a year earlier, as capital spending accelerated. Despite the decline, AT&T reaffirmed its full-year free cash flow target of over $18 billion. CFO Pascal Desroches noted that net debt to adjusted EBITDA rose to 2.71 times by the end of the quarter, up from prior levels.
The note sale is split across five tranches: $750 million of 4.750% notes due 2033; $1.75 billion of 5.250% notes due 2036; $500 million of 5.850% notes due 2046; $2 billion of 6.200% notes due 2056; and $1 billion of 6.300% notes due 2066. The ultra-long 2066 portion locks in financing for decades, signaling AT&T’s focus on long-term network investments.
AT&T’s broadband business showed momentum in the first quarter, with 584,000 net additions for fiber and fixed wireless internet—split evenly between the two. Postpaid phone net adds came in at 294,000. CEO John Stankey called it the company’s “best first quarter ever” for advanced connectivity customer growth.
Desroches told investors that AT&T ended the quarter with $12 billion in cash and $19 billion in undrawn term loans, describing the company’s liquidity as strong. However, leverage is expected to rise to about 3.2 times after the EchoStar deal closes, before declining to roughly 3 times by end-2026 and eventually returning to the 2.5-times target within three years.
The debt sale comes just after AT&T’s May 1 dividend payment of 27.75 cents per common share. The company continues to balance shareholder returns with heavy capital outlays. Analysts at Zacks Investment Management noted that AT&T could have reported stronger free cash flow but chose to reinvest aggressively, betting that data will drive future revenue.
Competition remains intense. T-Mobile US (TMUS) recently announced new fiber joint ventures and a business internet package leveraging 5G and Starlink backup. Verizon (VZ) raised its annual profit outlook after topping subscriber estimates. AT&T shares closed at $26.12 on Friday, little changed, while Verizon ended at $48.11 and T-Mobile at $196.06.
Investors will get their next formal update at AT&T’s annual meeting on May 14. The company’s ability to execute its fiber and spectrum strategy while managing debt will be a key focus.
