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AT&T TO CALL FIVE DEBT ISSUES FOR REDEMPTION

 NEW YORK, March 23 /PRNewswire/ -- AT&T (NYSE: T) today said it will call five long-term debt issues totaling $1.75 billion for early redemption.
 The company said the cost of the redemptions would reduce 1993 earnings, but interest savings would improve future earnings.
 Three issues are being called today and have a redemption date of April 22, 1993. They are:
 -- $300 million of 8-5/8-percent AT&T debentures issued April 1, 1986, and due to mature April 1, 2026, to be redeemed at 105.79 percent of face value plus accrued interest.
 -- $350 million of 7-1/8-percent AT&T debentures issued Dec. 1, 1972, and due to mature Dec. 1, 2003, redeemable at 101.59 percent of face value plus accrued interest.
 -- $500 million of 7-percent AT&T debentures issued Feb. 15, 1971, and due to mature Feb. 15, 2001, redeemable at 100.75 percent of face value plus accrued interest.
 The two remaining issues, to be called tomorrow and redeemed April 23, 1993, are:
 -- $300 million of 9-percent AT&T Eurodollar debentures issued March 17, 1986, and due to mature March 17, 2016, redeemable at 107.2 percent of face value plus accrued interest.
 -- $300 million of 8-7/8-percent Pacific Telephone and Telegraph (now Pacific Bell) debentures issued July 1, 1976, and due to mature July 1, 2015. Under terms of the 1984 Bell System divestiture, AT&T assumed financial responsibility for the payment of principal and interest on these debentures. AT&T has requested that Pacific Bell redeem the debentures; Pacific Bell will issue the formal call notice and manage the redemption. The debentures will be redeemed at 104.84 percent of face value plus accrued interest.
 AT&T said it expects to use cash reserves and new debt to fund the redemptions.
 The company said it expects the refunding to increase earnings by as much as three cents per share annually beginning in 1994. AT&T noted that one-time costs associated with the redemptions are expected to reduce first-quarter 1993 earnings by approximately four cents per share. However, interest expense reductions in subsequent quarters will reduce the full-year 1993 impact to less than two cents per share.
 Chemical Bank, fiscal agent for the 9-percent Eurodollar debenture, will manage the redemption of that issue from its offices in London and other European locations. First Trust of California, National Association, will manage redemption of the Pacific Bell issue, and First National Bank of Chicago will administer the remaining issues.
 -0- 3/23/93
 /CONTACT: Ellen Zundl, 908-221-4011, or home, 201-543-2236, or Dick Gray, 908-221-5057, or home, 908-232-3706, both of AT&T/
 (T)


CO: AT&T ST: New Jersey IN: TLS SU:

PS -- NY012 -- 8503 03/23/93 08:31 EST
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Publication:PR Newswire
Date:Mar 23, 1993
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