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Filed Pursuant to Rule 424 (b) (3)
Registration No. 33-49589
Pricing Supplement No. 4 Dated: August 3, 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: $75,000,000
Agent: Salomon Brothers Inc acting as
Principal
Original Issue Date: September 1, 1994
Maturity Date: September 1, 2009
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.
Specified Currency: U.S. Dollars
Note Form: Book-Entry
Interest Rate: From September 1, 1994 through
August 31, 1997 7.500%,
From September 1, 1997 through
August 31, 1998 7.625%,
From September 1, 1998 through
August 31, 1999 7.750%,
From September 1, 1999 through
August 31, 2000 7.875%,
From September 1, 2000 through
August 31, 2001 8.000%.
From September 1, 2001 through
August 31, 2002 8.125%.
From September 1, 2002 through
August 31, 2003 8.375%.
From September 1, 2003 through
August 31, 2004 8.625%.
From September 1, 2004 through
August 31, 2005 8.875%.
From September 1, 2005 through
August 31, 2006 9.250%.
From September 1, 2006 through
August 31, 2007 9.750%.
From September 1, 2007 through
August 31, 2008 10.750%.
From September 1, 2008 through
August 31, 2009 11.750%.
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Interest Payment Dates: Semi-Annually, on each September 1
and March 1, commencing on March 1,
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 or in part prior to maturity at the option
of the Company.
Optional Redemption Dates: On each Interest Payment Date,
commencing on September 1, 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.
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.
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The Notes provide for interest payable semiannually at a fixed rate that
increases annually, commencing on September 1, 1997, and they are callable at
the option of the Company on any interest payment date, commencing on
September 1, 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 1, 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 1,
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.
