AT&T Has 'Strong Cash Position' Despite Coronavirus Shutdown

AT&T says 'it has a strong cash position' and will continue to pay a quarterly dividend.
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AT&T  (T) - Get Report said Tuesday that "it has a strong cash position" despite the coronavirus pandemic that has shut down most of the world's economy, has a $5.5 billion term-loan agreement and will continue to pay a quarterly dividend to shareholders.

Shares of the Dallas-based telecommunications giant were up nearly 4% to $30.59.

"The company has a strong cash position, including a strong balance sheet and attractive liquidity," AT&T said in a statement.

AT&T said it has a $5.5 billion term-loan agreement with 12 banks "to provide additional financial flexibility to an already strong cash position." The company had about $12 billion in cash on hand on Dec. 31.

The company said it also has a fully committed $15 billion revolver in place and "has no need or plans to use it in 2020."

AT&T said it has worked with its suppliers to ensure a geographically diverse supply chain to reduce risk.

"While the COVID-19 pandemic is subject to rapid change, in general, the company believes its exposure to near-term equipment shortages is limited," AT&T said.

In March, AT&T said it canceled a $4 billion accelerated share repurchase that planned for the second quarter and stopped all share repurchases.

In addition, AT&T said "as it has for the past 36 years, the company looks forward to continuing to pay a quarterly dividend to shareholders." The board declared a dividend on March 27, payable May to stockholders of record at the close of business on April 9.

The company said the funded status of its pension fund is about the same as the end of 2019, which no cash funding requirements expected through 2022

AT&T said it will provide more information on the impact of the coronavirus at its first-quarter earnings call on April 22. AT&T said its pension plan assets "are invested conservatively and are well diversified."