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Filed Pursuant to Rule 424 (b) (3)
Registration No. 33-49589
Pricing Supplement No. 6 Dated: September 12, 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: $25,000,000
Agent: Salomon Brothers Inc acting as
Principal
Original Issue Date: September 30, 1994
Maturity Date: September 30, 2009
Issue Price: The agent has purchased the notes
as principal at 100% of the
principal amount for resale to
dealers and investors at varying
prices. See "Plan of Distribution"
below.
Specified Currency: U.S. Dollars
Note Form: Book-Entry
Interest Rate: From September 30, 1994 through
September 29, 1997 7.700%,
From September 30, 1997 through
September 29, 1998 7.800%,
From September 30, 1998 through
September 29, 1999 7.900%,
From September 30, 1999 through
September 29, 2000 8.000%,
From September 30, 2000 through
September 29, 2001 8.100%.
From September 30, 2001 through
September 29, 2002 8.250%.
From September 30, 2002 through
September 29, 2003 8.500%.
From September 30, 2003 through
September 29, 2004 8.750%.
From September 30, 2004 through
September 29, 2005 9.000%.
From September 30, 2005 through
September 29, 2006 9.500%.
From September 30, 2006 through
September 29, 2007 10.000%.
From September 30, 2007 through
September 29, 2008 10.500%.
From September 30, 2008 through
September 29, 2009 11.500%.
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Interest Payment Dates: Semi-Annually, on each September 30
and March 30, commencing on March
30, 1995. 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
Calculation Agent: N/A
Redemption:
The Notes may be redeemed in whole only prior to maturity at the option of
the Company.
Optional Redemption Dates: On each Interest Payment Date,
commencing on September 30, 1997.
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
This Note is not a Discount Note or an Original Issue Discount Note.
Plan of Distribution
See Issue Price above. The Agent (acting as principal) has advised the
Company that it proposes to offer the Notes from time to time to investors at
variable prices determined at the time of sale, and to dealers at variable
prices determined at the time of sale, which may represent selling
concessions to such dealers, for resale by the dealers to investors at
varying prices determined by such dealers at the time of resale.
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.
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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, commencing on September 30, 1997, and they are
callable at the option of the Company on any interest payment date,
commencing on September 30, 1997, 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, commencing on September 30, 1997, 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
September 30, 1997, 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 and stated interest on the Notes
will be taxable to a United States Holder as ordinary income at the time that
it is received or accrued, depending on the United States Holder's method of
accounting.
While the OID Regulations have amended many provisions of the Proposed
OID Regulations, such amendments are not relevant to the Notes.
