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AT&T to Sell $6.2 Billion of Debt to Finance DirecTV Spinoff

(Image credit: DirecTV)

AT&T is selling $6.2 billion worth of DirecTV Holdings debt in order to finance the spinoff of its linear pay TV assets. 

The telecom is selling $3.1 billion of six-year secured bonds (aka junk bonds) that are set to price Thursday and may yield around 6% to 6.5%, sources close to the company told Bloomberg. 

AT&T is also looking to sell a $3.1 billion six-year leveraged loan that pays about 5.25 percentage points more than the London interbank offered rate, the news service also reports.

The FCC already signed off on the deal, which will see DirecTV, AT&T U-verse TV and AT&T TV spun off into a new entity, with private equity company TPG owning 30%.

AT&T will likely have more updates on the spinoff Thursday when it reports second-quarter earnings.