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AT&T seeks $25B credit line
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October 31, 2000: 12:23 a.m. ET
Soliciting one of biggest credit facilities ever from handful of institutions
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NEW YORK (CNNfn) - AT&T Corp. is seeking a $25 billion commitment from a handful of big financial institutions to create what would be one of the biggest credit facilities of its type ever arranged, according to a published report.
The Financial Times' Web site reported Tuesday that the move in part reflects uneasiness in the credit markets over the telecommunications company's plans for a complex, four-way break-up, announced last week.
Despite a rally in AT&T's long-term bonds when the break-up was announced, most fixed income analysts expect the reorganization to weaken the company's credit standing, the story said.
By arranging a large stand-by bank facility, AT&T would be less dependent on the vagaries of the short-term commercial paper markets, where sentiment has turned heavily against telecommunications companies in recent weeks, the story said.
One person familiar with the company's plans said that the stand-by credit, which will replace a $10 billion credit already in place, had been prompted by the completion of the company's acquisition of MediaOne, a cable company, in June, the FT reported.
Chase Manhattan and the company's financial advisers, Goldman Sachs and Credit Suisse First Boston, are leading the credit facility and have each committed $2.5 billion towards the total, the story said.
Citigroup is one of five banks to have been approached about each making a $2.5 billion commitment to support the $25 billion facility. The others are Bank of America, Bank One, Deutsche Bank and Merrill Lynch. 
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