-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Z3Fz2IVKKzgdPZqR/HFhsDrQ976xisDXijya5BV0WgZivHuhddXRuHuJRTYjXgrL A1f7lQifVvsQ/HxN0pPxsQ== 0000005907-94-000024.txt : 19940527 0000005907-94-000024.hdr.sgml : 19940527 ACCESSION NUMBER: 0000005907-94-000024 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19940526 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AT&T CORP CENTRAL INDEX KEY: 0000005907 STANDARD INDUSTRIAL CLASSIFICATION: 4813 IRS NUMBER: 134924710 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: 1933 Act SEC FILE NUMBER: 033-49589 FILM NUMBER: 94530855 BUSINESS ADDRESS: STREET 1: 32 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 100132412 BUSINESS PHONE: 2126055500 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN TELEPHONE & TELEGRAPH CO DATE OF NAME CHANGE: 19920703 424B3 1 STICKER 1 Filed Pursuant to Rule 424 (b) (3) Registration No. 33-49589 Pricing Supplement No. 2 Dated: May 26, 1994 (To Prospectus dated June 23, 1993 and Prospectus Supplement dated October 8, 1993) AT&T Corp. Medium-Term Notes, Series A Due More than Nine Months From Date of Issue Fixed Rate Note Principal Amount: $50,000,000 Agent: Salomon Brothers Inc acting as Principal Original Issue Date: June 2, 1994 Maturity Date: June 2, 1999 Issue Price: The agent has purchased the notes as principal at 100% of the principal amount for resale to investors at varying prices determined by the agent. Denominations: $5,000 and integral multiples of $5,000. Specified Currency: U.S. Dollars Note Form: Book-Entry Interest Rate: From June 2, 1994 through June 1, 1995 6.40%, From June 2, 1995 through June 1, 1996 6.70%, From June 2, 1996 through June 1, 1997 7.20%, From June 2, 1997 through June 1, 1998 8.45%, From June 2, 1998 through June 1, 1999 9.95%. Interest Payment Dates: Semi-Annually, on each June 2 and December 2, commencing on December 2, 1994. If the Interest Payment Date is not a New York Banking Day, interest will be paid on the next New York Banking Day. Accrual of Interest: Interest accrues up to, but not including, the next relevant Interest Payment Date from, and including, the next preceding Interest Payment Date to which interest has been paid (or from and including the Original Issue Date if no interest has been paid on the Notes) unless the Notes (or any portion thereof) have been called for redemption as provided for below. Calculation Dates: N/A 2 Calculation Agent: N/A Redemption: The Notes may be redeemed in whole or in part prior to maturity at the option of the Company. Optional Redemption Dates: On each Interest Payment Date, commencing on June 2, 1995. Optional Redemption Price: 100% of principal amount. Annual Redemption Price Reduction: N/A Repayment: The Notes cannot be repaid prior to maturity at the option of the holder. Renewal: The Notes cannot be renewed by the holder. Extension: The Notes cannot be extended prior to maturity. Dual Currency Notes: The Company can not make payments in an optional currency. Original Issue Discount The Notes are not Discount Notes or Original Issue Discount Notes. Plan of Distribution See Issue Price above. Taxation The following discussion of the United States federal income tax consequences of the ownership of the Notes supplements, and to the extent inconsistent with replaces, the discussion under the caption "Taxation" in the Prospectus Supplement dated October 8, 1993. Terms not defined herein have the same meanings as in the Prospectus Supplement. This discussion is based on regulations concerning the treatment of debt instruments issued with original issue discount (the "OID Regulations") and related provisions of the Code. The OID Regulations are effective for Notes issued on or after April 4, 1994. The Notes provide for interest payable semiannually at a fixed rate that increases annually and they are callable at the option of the Company on any interest payment date, commencing on June 2, 1995, at 100% of their principal amount plus accrued and unpaid interest. Under the OID Regulations, as under the Proposed OID Regulations, the issuer of a debt instrument who has a call option will be presumed to exercise that call option if the yield of the debt instrument, assuming the call option is exercised, is lower than it would be if the call option were not exercised. If the call option is presumed to be exercised but the debt instrument in fact remains outstanding after the call date, the OID Regulations treat the debt instrument as if it had in fact been called and a new debt instrument were issued on such date for an amount equal to its adjusted issue price on that date. This redemption and reissuance are solely for purposes of the OID Regulations. Because the interest rate on the Notes increases each year, and because the Company has the right to call the Notes at 100% of their principal amount plus accrued and unpaid interest on each interest payment date, commencing on June 2, 1995, the Company intends to take the position that the call options exercisable on each interest payment date on which the interest rate on the Notes is increased will be presumed to be exercised and a new instrument issued on each such call date. If the Company does not exercise a call option which is presumed to be exercised, the Notes will be treated as redeemed and reissued at 100% of their principal amount. As a result, the Notes will not bear original issue discount. While the OID Regulations have amended many provisions of the Proposed OID Regulations, such amendments are not relevant to the Notes. -----END PRIVACY-ENHANCED MESSAGE-----