WarnerMedia Parent AT&T Takes Out $5.5B Loan, Assures Wall Street It’s Financially Solid Amid Coronavirus Pandemic

WarnerMedia Parent AT&T Takes Out $5.5B Loan, Assures Wall Street It’s Financially Solid Amid Coronavirus Pandemic

07 Apr 2020 (PT)
WALL STREETWARNERMEDIACORONAVIRUS

WarnerMedia parent A&T said Tuesday it's set up a new $5.5 billion loan agreement at competitive rates with 12 banks to provide additional financial flexibility to its “already strong cash position.” The loans are pre-payable without peny, it said as it seeks to reassure the markets and employees that it’s on solid ground in uncertain times.

AT&T also noted that it has access to a fully committed $15 billion revolver loan already in place that it has no need or plans to draw on in 2020 – but it’s there in case. AT&T is the  latest big media company to flesh out its cash cushion to hedge against the economic risks and unknowns of the coronavirus pandemic.

In a statement, the company also offered a financial update, ticking off its points of financial strength, including a strong balance sheet and attractive liquidity.  It said it had about $12 billion in cash on hand as of Dec. 31 and  received about $4 billion from selling preferred stock in February. It also completed a share repurchase in March but has nowstopped all share repurchases.

Going forward, the company, which plans to roll out HBO Max next moth, said it expects the following to put it in a good place: • The strength and relevance of core subscription businesses, continued execution on business transformation initiatives, and sizing operations to economic activity will provide cash from operations that will support network investments, dividend payments and debt retirement, as well as the ability to invest in business opportunities that arise as the economies recover. • About $2 billion from the expected closing later in 2020 from the previously announced divestiture of CME, as well as additional proceeds from a number of other real estate and tower sales. • The company expects to close the sale of its Puerto Rico and U.S. Virgin Islands operations later this year and intends to use the proceeds to retire an outstanding preferred interest. • Continued access to commercial paper, bond markets and other financing activities which, as in the past, will be utilized as part of normal financing activity based on cost, duration and overall market conditions. • As it has for the past 36 years, the company will pay a quarterly dividend to shareholders. .

AT&T also added that its pension fund requires no cash in the near term and it doesn't expect any required contributions through 2022. The plan has allocated substantially all of the remaining assets to fixed income, preferred securities and other investments which have returns much less impacted by current equity markets.

It also emphasized that it believes its exposure to near term equipment shortages is limited given a geographically diverse supply chain.

Source: deadline.com

WALL STREETWARNERMEDIACORONAVIRUS
Weekend of July 31 - August 2, 2020 (IMDb)
The Rental
1.
The Rental
Net: $0.3M Grs: $0.9M
Weeks: 2
The Goonies
2.
The Goonies
Net: $0.2M Grs: $0.4M
Weeks: 4
Jurassic Park
3.
Jurassic Park
Net: $0.1M Grs: $0.9M
Weeks: 7
Back to the Future
4.
Back to the Future
Net: $0.1M Grs: $0.1M
Weeks: 1
Grease
5.
Grease
Net: $0.1M Grs: $0.1M
Weeks: 1
The Big Ugly
6.
The Big Ugly
Net: $0.1M Grs: $0.3M
Weeks: 2
Summerland
7.
Summerland
Net: $0.0M Grs: $0.0M
Weeks: 1
The Wretched
8.
The Wretched
Net: $0.0M Grs: $1.8M
Weeks: 14
Relic
9.
Relic
Net: $0.0M Grs: $1.0M
Weeks: 5
The Grizzlies
10.
The Grizzlies
Net: $0.0M Grs: $0.0M
Weeks: 1
WarnerMedia Parent AT&T Takes Out $5.5B Loan, Assures Wall Street It’s Financially Solid Amid Coronavirus Pandemic
Movie News | Entertainment News | TV shows | Trailers | Videos | Movier.net for movie lovers
Copyright - www.movier.net - Email: [email protected]
Movier.net just now