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Filed Pursuant to Rule 424 (b) (3)
Registration No. 33-49589
Pricing Supplement No. 1 Dated: April 22, 1994
(To Prospectus date June 23, 1993 and Prospectus Supplement
date October 8, 1993)
AT&T Corp.
Medium-Term Notes, Series A
Due More than Nine Months From Date of Issue
Floating Rate Note
Principal Amount: $25,000,000
Agent: Salomon Brothers Inc acting as
Principal
Original Issue Date: April 26, 1994
Maturity Date: April 26, 1999
Issue Price: 100% (as a percentage of principal
amount)
Specified Currency: U.S. Dollars
Note Form: Book-Entry
Initial Interest Rate: The Initial Interest Rate will be
determined on or about April 25,
1994 at 3:45 p.m. New York Time.
The Initial Interest Rate will be
the 2-year Constant Maturity
Treasury Rate (as defined below) as
of April 22, 1994 from Telerate p.
7055 or its successor page minus the
spread described below.
Type of Floating Rate Note: Regular Floating Rate
Interest Rate following Initial
Interest Rate: Base Rate minus spread described
below
Base Rate: The "Constant Maturity Treasury
Rate" shall be the rate that is set
forth in the Federal Reserve Board
publication H.15(519) opposite the
caption "U.S.
Government/Securities/Treasury
Constant Maturities/" in the Index
Maturity with respect to the
applicable Interest Determination
Date (as defined elsewhere). If the
H.15 (519) is no longer published,
the "Constant Maturity Treasury
Rate" shall be the rate that is set
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forth on Telerate Page 7055, or its
successor page (as determined by the
Calculation Agent), for the
applicable Interest Determination
Date opposite the applicable Index
Maturity. If no such rate is set
forth, then the Constant Maturity
Treasury Rate for such Interest
Reset Date shall be established by
the Calculation Agent as follows.
The Calculation Agent will contact
the Federal Reserve Board and
request the Constant Maturity
Treasury Rate, in the applicable
Index Maturity, for the Interest
Determination Date. If the Federal
Reserve Board does not provide such
information, then the Constant
Maturity Treasury Rate for such
Interest Reset Date will be the
arithmetic mean of quotations
reported by three leading U.S.
government securities dealers (one
of which may be the Calculation
Agent), according to their written
records, with reference to the 3:00
p.m. (New York Time) on the Interest
Determination Date closing bid-side
yield quotations for the noncallable
U.S. Treasury Note that is nearest
in maturity to the Index Maturity,
but not less than exactly the Index
Maturity and for the noncallable
U.S. Treasury Note that is nearest
in maturity to the Index Maturity,
but not more than exactly the Index
Maturity. The Calculation Agent
shall calculate the Constant
Maturity Treasury Rate by
interpolating to the Index Maturity
based on an Actual/Actual day count
basis, the yield on the two Treasury
Notes selected. If the Calculation
Agent cannot obtain three such
adjusted quotations, the Constant
Maturity Treasury Rate for such
Interest Determination Date will be
the arithmetic mean of all such
quotations, or if only one such
quotation is obtained, such
quotation, obtained by the
Calculation Agent. In all events,
the Calculation Agent shall continue
polling dealers until at least one
adjusted yield quotation can be
determined.
Index Currency: U.S. Dollar
Index Maturity: Two Years
Spread: 40 basis points
Interest Reset Period: Quarterly
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Maximum Interest Rate: N/A
Minimum Interest Rate: 0.0%
Interest Payment Date: Quarterly, on the 26ths of each
January, April, July and October,
commencing on July 26, 1994,
provided that if any Interest
Payment Date is not a Business Day,
then interest will be paid on the
next succeeding Business Day.
Interest payments will include the
amount of interest accrued from and
including the most recent 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) to but
excluding the applicable Interest
Payment Date, without adjustment for
changes in the Interest Payment Date
if the scheduled Interest Payment
Date is not a Business Day.
Interest Reset Date: Quarterly, on the 26ths of each
January, April, July, and October,
commencing on July 26, 1994.
Interest Determination Date: Ten New York business days prior to
the Reset Date.
Day Count Convention: Actual/Actual
Accrual of Interest: Accrued interest from the Original
Issue Date or from the last date to
which interest has been paid with
respect to any Note will be
calculated by multiplying the face
amount of such Note by an accrued
Interest Factor. This accrued
Interest Factor will be computed by
adding the Interest Factors
calculated for each day from the
Original Issue Date or from the last
date to which interest has been paid
to the date for which accrued
interest is being calculated. The
"Interest Factor" for any Note for
each such day will be computed by
dividing the interest rate
applicable to such day by the actual
number of days in the applicable
year.
Calculation Date: The fifth Business Day after each
Interest Determination Date.
Calculation Agent: Salomon Brothers Inc
Redemption:
The Notes cannot be redeemed prior to maturity.
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Repayment:
The Notes cannot be repaid prior to maturity.
Renewal:
The Notes cannot be renewed by the investor.
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 a Discount Note or an Original Issue Discount Note.
Plan of Distribution
The Agent has purchased the Notes as principal at 100% of the principal amount
for resale at the issue price of 100% of principal amount.
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.
Under Section 1.1275-5 of the OID Regulations, as under the Proposed OID
Regulations, the Notes will be treated as variable rate debt instruments and
will not bear original issue discount. As a result, interest on a Note 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.<PAGE>
