AT&T explores Puerto Rico sale to cut debt - Mobile World Live

AT&T explores Puerto Rico sale to cut debt

19 JUL 2019

AT&T began exploring a sale of its business in Puerto Rico as part of a continuing effort to cut debt, Reuters reported.

The operator hired a financial adviser to help with the sale, which could raise as much as $3 billion, the news agency stated.

While AT&T does not break out unit details in its financial reports, Reuters noted the Puerto Rico business offers TV, internet, landline phone and business services with annual EBITDA of around $300 million.

During the operator’s Q1 earnings call, CEO Randall Stephenson reiterated eliminating debt accrued as part of its $85 billion acquisition of Time Warner in 2018 and $49 billion purchase of DirecTV in 2015 was a top priority for the company. At end-March, it had $163.9 billion in long term debt.

It raised $5 billion in February through the sale of unsecured bonds as part of its debt reduction effort.

In April, AT&T batted down reports it was considering a sale of the European arm of HBO, but subsequently sold its minority stake in Hulu for $1.43 billion.

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Diana Goovaerts

Diana joins Mobile World Live as its new US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana comes to GSMA from her former role as Editor of Wireless Week and...

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