DirecTV Sells $3.1 Billion in Unwanted Bonds as Part of AT&T Split

(Bloomberg) — DirecTV to sell $3.1 billion in junk bonds to complete the split of AT&T Inc. support, according to a person familiar with the case.

An investor call for the six-year secured bonds has been set at 10:30 a.m. Monday in New York and the bonds will be priced on Thursday, said the person, who asked not to be identified because the details are private.

The proceeds, along with money from the company’s term facility, will be used to refinance debt owed to AT&T. AT&T announced that it would divest DirecTV earlier this year and create a joint venture with private equity firm TPG to run DirecTV and AT&T’s other pay-TV businesses. The private equity firm acquires a 30% stake in the company. The deal valued the company at about $16 billion, a fraction of what AT&T paid in 2015.

DirecTV is also marketing a $3.1 billion leveraged loan to support AT&T’s split, offering higher-than-normal returns for its rating category. The lenders are due Thursday for that debt.

Read More: DirecTV Markets $3.1 Billion in Loans to Support AT&T-TPG Deal

Credit Suisse Group AG, Bank of America Corp., Deutsche Bank AG, HSBC Holdings Plc, Bank of Montreal, Goldman Sachs Group Inc., Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group Inc., UBS Group AG, Barclays Plc and Jefferies Financial Group Inc. leads bond sales, the person said.

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