AT&T to sell Cablevision NY stock

In a move to reduce its debt load, AT&T announced last night that it will sell the common shares and the exchangeable securities of its Cablevision NY stock for $36.05 per share. The carrier expects to generate about $1.3 billion of pre-tax proceeds at closing, net of underwriting fees on Oct. 23.

The carrier will sell about 19.2 million shares of Cablevision NY Group Class A common stock, and via a trust, 23.4 million shares of exchangeable trust security. The exchangeable securities, valued for up to 23.4 million shares of Cablevision NY Group Class A common stock when it matures in three years, are expected to provide a 6.5% yield and 22% conversion premium.

AT&T also may sell an additional 6.4 million shares of combined shares and exchangeable security shares if the underwriters’ over-allotment options are exercised, subsequently disposing of AT&T’s stake in Cablevision NY Group and generating an additional $200 million in cash.

--Amalia D. Parthenios, staff writer