FOREIGN EXCHANGE RISKS
Investors will have to pay for the Notes in euro. Principal and interest payments of the Notes are payable by us in euro. An investment in the
Notes which are denominated in, and all payments in respect of which are to be made in, a currency other than the currency of the country in which the purchaser is resident or the currency in which the purchaser conducts its business or activities
(the home currency), entails significant risks not associated with a similar investment in a security denominated in the home currency. These include the possibility of:
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significant changes in rates of exchange between the home currency and the euro, and |
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the imposition or modification of foreign exchange controls with respect to the euro. |
We have no control over a number of factors affecting this type of Note, including economic, financial and political events that are important
in determining the existence, magnitude and longevity of these risks and their results. In recent years, rates of exchange for certain currencies, including the euro, have been highly volatile and this volatility may be expected to continue in the
future. Fluctuations in any particular exchange rate that have occurred in the past are not necessarily indicative of fluctuations in the rate that may occur during the term of the Notes. Depreciation of the euro against the home currency could
result in a decrease in the effective yield of the Notes below the coupon rate, and in certain circumstances, could result in a loss to you on a home currency basis.
Under the terms of the indenture under which the Notes are to be issued, if euro ceases to exist when payments on the Notes are due under any
circumstances, AT&T may supplement the indenture to allow for payment in U.S. dollars.
The Notes will be governed by New York law.
Under New York law, a New York state court rendering a judgment on the Notes would be required to render the judgment in euro. However, the judgment would be converted into U.S. dollars at the exchange rate prevailing on the date of entry of the
judgment. Consequently, in a lawsuit for payment on the Notes, investors would bear currency exchange risk until a New York state court judgment is entered, which could be a long time.
In courts outside of New York, investors may not be able to obtain a judgment in a currency other than U.S. dollars. For example, a judgment
for money in an action based on the Notes in many other U.S. federal or state courts ordinarily would be enforced in the United States only in U.S. dollars. The date used to determine the rate of conversion of euro into U.S. dollars will depend upon
various factors, including which court renders the judgment.
This description of foreign currency risks does not describe all the risks
of an investment in securities denominated in a currency other than the home currency. You should consult your own financial and legal advisors as to the risks involved in an investment in the Notes.
On September 9, 2025, the euro/U.S.$ rate of exchange was €1 /U.S.$1.1746.
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