AT&T Secures $30 Billion Loan Facility.NEW YORK--(BUSINESS WIRE)--April 28, 1999-- AT&T today announced that it had received commitments far in excess of the $30 billion needed to support the company's proposed offer to purchase MediaOne Group MediaOne Group, Inc. was a media/cable TV company that was formed in 1995 as U S WEST Media Group. It was created to eliminate competition between U S WEST's telephone service and cable TV businesses. . The $30 billion syndicated loan Syndicated Loan A very large loan in which a group of banks work together to provide funds for one borrower. There is usually one lead bank that takes a small percentage of the loan and syndicates the rest to other banks. Notes: Also known as a "syndicated bank facility. , the largest ever structured, was completed three days after the launch of the syndication See syndication format. last Thursday. On April 22, AT&T said it had submitted an offer to purchase all of MediaOne Group for $87.375 per share in cash and stock for a total value of $58 billion, based on AT&T's closing stock price of $59.50 (on April 22, 1999), not including $4.5 billion in assumed debt and preferred equity. AT&T said it will pay $30.85 in cash plus .95 share of AT&T stock for every MediaOne Group share. In addition to supporting operating needs, the $30 billion facility fully supports AT&T's cash portion of the offer. As previously announced, AT&T has received $5 billion each in commitments from Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. and Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. Credit Partners L.P., who are acting as lead arrangers Lead arranger The senior tier of arranger for the facility. In addition, the company received 16 other commitments from a select group of AT&T's core relationship lenders, who will act as co-arrangers. The facility was over subscribed with AT&T receiving offers of commitments in excess of $42 billion. "Our success in promptly arranging the widespread commitments is a reflection of the strong support we've seen from lenders who also recognize the clear and compelling strategic implications of this transaction," said Ed Dwyer, treasurer. The company expects to complete a broad syndication of the facility as quickly as necessary. |
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