AT&T Inc. is in discussions with banks for a new $5 billion term loan as it seeks alternative short-term financing options following a spike in commercial-paper costs, according to people familiar with the matter.

The talks are still in flux and details may change, said the people, who asked not to be named because the discussions are private. The phone and media giant, which has the highest debt load of any non-financial company in the U.S., was initially discussing a $3 billion loan last week.

AT&T also canceled its $4 billion accelerated share buyback plan Friday, less than a month after it was announced, as part of a broader effort to boost flexibility while financial markets continue to reel from the spreading coronavirus.

The loan is expected to be for less than a year and pricing is being discussed at 150 basis points over the London interbank offered rate, the people said. Pricing on AT&T’s existing five-year revolver has a lower drawn margin of 112.5 basis points over Libor, according to a filing.

One-month commercial paper for AT&T was offered Monday at 3%, compared to 1.95% last week, a trader said. That rate is expected to drop, the trader added, following the Federal Reserve’s support of that market, which companies typically use to meet near-term cash needs like payroll.

Representatives for Bank of America Corp., which is the agent bank on the new loan, and AT&T declined to comment.

AT&T, rated two steps above junk by Moody’s Investors Service and S&P Global Ratings and four steps higher than high-yield by Fitch Ratings, is one of dozens of companies asking banks for new credit lines to raise liquidity as the commercial paper market remains strained.

AT&T’s commercial paper is rated A2/P2. Three-month borrowing costs for such lower quality non-financial issuers have more than doubled to 3.87% as of Thursday from 1.7% two weeks ago, according to Federal Reserve data.

Paula Seligson, Bloomberg