By Andrea Heisinger
New York, June 30 - Wal-Mart Stores Inc. priced $3 billion of senior notes (Aa2/AA/AA) in three tranches late in the afternoon on Wednesday, a source away from the sale said.
The $750 million of 2.25% five-year notes were sold at a spread of Treasuries plus 53 basis points, pricing at 99.695 to yield 2.315%. They were initially whispered in the 60 bps area, a source said.
A $1.5 billion tranche of 3.625% 10-year notes priced at a 70 bps over Treasuries spread, coming to market at 99.908 to yield 3.636%. They were whispered in the 80 bps area.
The $750 million tranche of 4.875% 30-year bonds priced with a 108 bps spread over Treasuries. It priced at 98.465 to yield 4.974%. Initial talk was in the 115 bps area.
Wal-Mart last priced bonds in a $2 billion deal in five- and 30-year tranches on March 24. The five-year notes priced at 45 bps over Treasuries, and the 30-year bonds at 95 bps.
Bookrunners for Wednesday's sale were Barclays Capital Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities. Credit Suisse Securities, Morgan Stanley & Co. Inc. and RBS Securities were passive bookrunners.
Proceeds are being used for general corporate purposes.
The discount retailer is based in Bentonville, Ark.
| Issuer: | Wal-Mart Stores Inc.
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Bookrunners: | Barclays Capital Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities (active), Credit Suisse Securities, Morgan Stanley & Co. Inc., RBS Securities (passive)
|
| Trade date: | June 30
|
| Settlement date: | July 8
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA
|
| Fitch: AA
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | July 8, 2015
|
| Coupon: | 2.25%
|
| Price: | 99.695
|
| Yield: | 2.315%
|
| Spread: | Treasuries plus 53 bps
|
| Call: | Non-callable
|
| Talk: | 60 bps area (whispered)
|
|
|
| Ten-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | July 8, 2020
|
| Coupon: | 3.625%
|
| Price: | 99.908
|
| Yield: | 3.636%
|
| Spread: | Treasuries plus 70 bps
|
| Call: | Non-callable
|
| Price talk: | 80 bps area (whispered)
|
|
|
| Thirty-year notes
|
| Amount: | $750 million
|
| Maturity: | July 8, 2040
|
| Coupon: | 4.875%
|
| Price: | 98.465
|
| Yield: | 4.974%
|
| Spread: | Treasuries plus 108 bps
|
| Call: | Non-callable
|
| Price talk: | 115 bps area (whispered)
|
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