By Devika Patel
Knoxville, Tenn., Oct. 12 – Wal-Mart Stores, Inc. (Aa2/AA/AA) priced $6 billion of notes in six tranches, according to an FWP filed with the Securities and Exchange Commission.
A $300 million tranche of two-year floaters sold at par to yield Libor minus 3 basis points.
There was $1.2 billion of 1.75% two-year bonds sold with a 23 bps spread over Treasuries. Pricing was at 99.998 to yield 1.751%.
Wal-Mart priced $1.25 billion of 1.9% three-year bonds at 30 bps over Treasuries. Pricing was at 99.855 to yield 1.947%.
The company sold $1.25 billion of 2.35% five-year bonds at 40 bps over Treasuries. Pricing was at 99.992 to yield 2.351%.
Wal-Mart priced $1 billion of 2.65% seven-year bonds at 48 bps over Treasuries. Pricing was at 99.971 to yield 2.654%.
The company also sold $1 billion of 3.625% 30-year bonds with a 75 bps spread over Treasuries. Pricing was at 99.848 to yield 3.633%.
Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc. are the bookrunners.
Proceeds will be used to help fund an $8.5 billion tender offer for the company’s 6.5% notes due 2037, 6.2% notes due 2038, 5.625% notes due 2040, 5.625% notes due 2041, 5.25% notes due 2035, 5% notes due 2040, 4.875% notes due 2040, 4.75% notes due 2043, 4.3% notes due 2044, 4% notes due 2043, 5.875% notes due 2027, 4.125% notes due 2019 and 3.625% notes due 2020 and for general corporate purposes.
The discount retailer is based in Bentonville, Ark.
| Issuer: | Wal-Mart Stores, Inc.
|
| Issue: | Notes
|
| Amount: | $6 billion
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc.
|
| Trade date: | Oct. 11
|
| Settlement date: | Oct. 20
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Fitch: AA
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $300 million
|
| Maturity: | Oct. 9, 2019
|
| Coupon: | Libor minus 3 bps
|
| Price: | Par
|
| Yield: | Libor minus 3 bps
|
| Call: | Non-callable
|
|
|
| Two-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | Oct. 9, 2019
|
| Coupon: | 1.75%
|
| Price: | 99.998
|
| Yield: | 1.751%
|
| Spread: | Treasuries plus 23 bps
|
| Call: | Make-whole call at Treasuries plus 5 bps
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Dec. 15, 2020
|
| Coupon: | 1.9%
|
| Price: | 99.855
|
| Yield: | 1.947%
|
| Spread: | Treasuries plus 30 bps
|
| Call: | Make-whole call at Treasuries plus 5 bps
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Dec. 15, 2022
|
| Coupon: | 2.35%
|
| Price: | 99.992
|
| Yield: | 2.351%
|
| Spread: | Treasuries plus 40 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Nov. 15, 2022 and then a par call
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2024
|
| Coupon: | 2.65%
|
| Price: | 99.971
|
| Yield: | 2.654%
|
| Spread: | Treasuries plus 48 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Oct. 15, 2024 and then a par call
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2047
|
| Coupon: | 3.625%
|
| Price: | 99.848
|
| Yield: | 3.633%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until June 15, 2047 and then a par call
|
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