AT&T Inc. (NYSE:T) is seeking to ease its debt burden by repaying its upcoming debt maturities. The company recently issued notices to redeem three series of bonds, amounting to $1.2 billion to improve its liquidity position. AT&T wants to improve its capital structures as it navigates the global recession caused by the COVID-19 pandemic.
As of the end of the 2Q 2020, the company had spent $19.4 billion in debt repayment or refinancing. The redemptions have been in the form of either repayment of scheduled maturities, tender offers, or make-whole redemptions. The move is expected to reduce AT&T’s debt obligation by $8.2 billion within a year. The company is capitalizing on low borrowing to improve its balance sheet position.
AT&T’s 2Q 2020 Financial Results
At the end of the 2Q 2020, AT&T had $16,941 million of cash and cash equivalents. The company had long-term liabilities amounting to $153,388 million at the end of 2Q. This is compared to $9,955 million in cash and cash equivalents and $147,202 million in liabilities that the company closed the first quarter of 2020 with. The company is still overweighed by a huge debt burden from the above figures despite improvement in its cash position.
The company has called off its planned stock buyback program due to the impacts of the COVID-19 pandemic. The contagious disease has been very unpredictable due to its evolving nature. The disease has ravaged the global economy and forced the company to reconsider its buyback plan. The company’s management is also no longer giving any definite outlook for the 3Q 2020.
Samsung’s $500 Galaxy A51 5G is coming to AT&T
After launching on Verizon and T-Mobile, Samsung’s $500 Galaxy A51 5G will now launch on AT&T on August 21st. A51 5G is the 5G improved version of the A51, which was released in May and retails at $399. The new version has improved features like a larger 4,500mAh battery, 6GB of RAM, and a more powerful Exynos 980 processor.
Away from carrier competition, the A51 5G launched on AT&T is the same as those launched on other networks with a 6.5-inch OLED display, 128GB of internal storage, a quad-camera array led by a 48-megapixel main lens, and a 3.5mm audio jack.