By Devika Patel
Knoxville, Tenn., June 21 – Walmart Inc. offered further details about a $16 billion sale of senior notes (Aa2/AA/AA) that priced in nine tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The issue surpassed initial expectations of about $10 billion of new paper.
The company sold $750 million of two-year floating-rate notes at Libor plus 4 basis points. These notes priced at par.
It sold $1.25 billion of 2.85% two-year fixed-rate notes at a spread of Treasuries plus 30 bps. These notes priced at 99.969 to yield 2.866%.
The $750 million tranche of three-year floating-rate notes priced at Libor plus 23 bps. These notes priced at par.
There was $1.75 billion of 3.125% three-year fixed-rate notes placed at a Treasuries plus 45 bps spread. These notes priced at 99.995 to yield 3.127%.
The $2.75 billion of 3.4% five-year notes came at a 60 bps spread over Treasuries. These notes priced at 99.973 to yield 3.406%.
A $1.5 billion tranche of 3.55% seven-year notes priced at a Treasuries plus 70 bps spread. These notes priced at 99.712 to yield 3.597%.
Walmart sold $2.75 billion of 3.7% 10-year notes with a Treasuries plus 80 bps spread. These notes priced at 99.694 to yield 3.737%.
A $1.5 billion 3.95% 20-year tranche of notes priced at a spread of 95 bps over Treasuries. These notes priced at 98.963 to yield 4.026%.
The final $3 billion of 4.05% 30-year bonds priced at a Treasuries plus 105 bps spread. These notes priced at 98.699 to yield 4.126%.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, HSBC Securities (USA) Inc. and Wells Fargo Securities LLC were the bookrunners.
The company held fixed income investor calls on Monday.
Proceeds will be used for a portion of the approximately $16 billion purchase price for the company’s planned acquisition of 77% of the common stock of Flipkart Private Ltd. and, if not used for the acquisition, for general corporate purposes, including to redeem all of the company’s outstanding 2021 floating-rate notes, 2021 fixed-rate notes, 2023 notes, 2028 notes and 2038 notes in a special mandatory redemption.
The discount retailer is based in Bentonville, Ark.
| Issuer: | Walmart Inc.
|
| Amount: | $16 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, HSBC Securities (USA) Inc. and Wells Fargo Securities LLC
|
| Trade date: | June 20
|
| Settlement date: | June 27
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Fitch: AA
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Two-year floaters
|
| Amount: | $750 million
|
| Maturity: | June 23, 2020
|
| Description: | Floating-rate notes
|
| Coupon: | Libor plus 4 bps
|
| Price: | Par
|
| Yield: | Libor plus 4 bps
|
| Call: | Non-callable
|
|
|
| Two-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 23, 2020
|
| Description: | Fixed-rate notes
|
| Coupon: | 2.85%
|
| Price: | 99.969
|
| Yield: | 2.866%
|
| Spread: | Treasuries plus 30 bps
|
| Call: | Make-whole call at Treasuries plus 5 bps
|
|
|
| Three-year floaters
|
| Amount: | $750 million
|
| Maturity: | June 23, 2021
|
| Description: | Floating-rate notes
|
| Coupon: | Libor plus 23 bps
|
| Price: | Par
|
| Yield: | Libor plus 23 bps
|
| Call: | Non-callable
|
|
|
| Three-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | June 23, 2021
|
| Description: | Fixed-rate notes
|
| Coupon: | 3.125%
|
| Price: | 99.995
|
| Yield: | 3.127%
|
| Spread: | Treasuries plus 45 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps
|
|
|
| Five-year notes
|
| Amount: | $2.75 billion
|
| Maturity: | June 26, 2023
|
| Description: | Fixed-rate notes
|
| Coupon: | 3.4%
|
| Price: | 99.973
|
| Yield: | 3.406%
|
| Spread: | Treasuries plus 60 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until May 26, 2023, then a par call
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 26, 2025
|
| Description: | Fixed-rate notes
|
| Coupon: | 3.55%
|
| Price: | 99.712
|
| Yield: | 3.597%
|
| Spread: | Treasuries plus 70 bps
|
| Call: | Make-whole call at Treasuries plus 12.5 bps until April 26, 2025, then a par call
|
|
|
| 10-year notes
|
| Amount: | $2.75 billion
|
| Maturity: | June 26, 2028
|
| Description: | Fixed-rate notes
|
| Coupon: | 3.7%
|
| Price: | 99.694
|
| Yield: | 3.737%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole call at Treasuries plus 12.5 bps until March 26, 2028, then a par call
|
|
|
| 20-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 28, 2038
|
| Description: | Fixed-rate notes
|
| Coupon: | 3.95%
|
| Price: | 98.963
|
| Yield: | 4.026%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Dec. 28, 2037, then a par call
|
|
|
| 30-year notes
|
| Amount: | $3 billion
|
| Maturity: | June 29, 2048
|
| Description: | Fixed-rate notes
|
| Coupon: | 4.05%
|
| Price: | 98.699
|
| Yield: | 4.126%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Dec. 29, 2047, then a par call
|
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