Terms

Series

% Perpetual Preferred Stock, Series C

Liquidation Preference

$25.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

February 1, 2025

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Debt Obligations Of At&T Inc.; Pari Passu With: Parity Stock; Senior To: Common Stock, Junior Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.001

Prospectus Summary

AT&T Inc. is offering depositary shares, each representing a 1/1,000th interest in a share of its Perpetual Preferred Stock, Series C, with a liquidation preference of $25.00 per depositary share (equivalent to $25,000 per underlying preferred share). The coupon rate was not yet determined at the time of the preliminary filing. Dividends are cumulative, meaning that any skipped or deferred payments accumulate and must be paid in full before AT&T can resume dividends on junior securities; missed dividends do not, however, accrue interest. The Series C sits above AT&T's common stock and other junior equity in the capital stack but ranks junior to all of AT&T's debt obligations. Because this is a holding-company issuance, it is structurally subordinated to all liabilities at the operating subsidiary level, including AT&T's telecom subsidiaries. A ratings-event call provision allows AT&T to redeem the entire issue (but not partially) within 90 days of completing any review or appeal process after a qualifying ratings event, at $25.50 per depositary share plus accrued dividends—slightly above par—compensating holders for the call risk triggered by a credit-agency reclassification rather than simple economic choice by the issuer. Dividends are paid quarterly on February 1, May 1, August 1, and November 1, commencing May 1, 2020. For non-corporate U.S. holders who satisfy applicable holding-period requirements, dividends are expected to qualify as 'qualified dividend income' taxable at preferential 15%/20% rates; corporate holders may claim the dividends-received deduction. The dividend stopper prevents AT&T from paying dividends on or repurchasing common stock and other junior securities if full accrued Series C dividends have not been paid or set aside for the most recently completed dividend period, providing a measure of income protection for holders.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If AT&T has not paid or set aside full accrued dividends on the Series C through the most recently completed dividend period, it may not pay dividends on or repurchase its common stock or any other junior-ranking securities.

Other Preferreds from AT&T Inc.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 57 (Average)