AT&T pays down $5.3 billion in debt ahead of schedule

AT&T announced early repayment of six series of bonds totaling approximately $4.3 billion and prepayment of term loans totaling $1.0 billion. The total principal of these prepayments is approximately $5.3 billion.

AT&T said its goal is to continue improving its credit quality even as it remains committed to paying a dividend to its shareholders and investing in its growth areas — fiber, 5G and HBO Max. For full-year 2020, AT&T expects its dividend payout of free cash flow ratio will be in the 60% range. This gives the company the flexibility to continue to reduce its debt levels during 2020.