By Andrea Heisinger
New York, Oct. 18 - Wal-Mart Stores Inc. priced $5 billion of senior unsecured notes (Aa2/AA/AA) in four tranches late on Monday, a source close to the deal said.
A $750 million tranche of 0.75% three-year notes priced at 99.651 to yield 0.866% with a spread of Treasuries plus 30 basis points. Price guidance was in the 30 bps area, with the notes pricing in line with the price talk.
A $1.25 billion tranche of 1.5% five-year notes was sold at 99.459 to yield 1.613% with a spread of Treasuries plus 48 bps. This was in the mid-range of price talk in the 50 bps area.
The third, and largest, tranche was $1.75 billion of 3.25% 10-year notes priced at 99.619 to yield 3.295% with a spread of 78 bps over Treasuries. The notes priced within guidance in the range of 75 to 80 bps.
A final tranche of $1.25 billion in 5% 30-year bonds sold at 98.336 to yield 5.109% with a spread of Treasuries plus 115 bps. The bonds priced at the tight end of price talk in the 120 bps area.
Barclays Capital Inc., Bank of America Merrill Lynch and Goldman Sachs & Co. were the active bookrunners. Passive bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.
Proceeds are being used for general corporate purposes, including repayment of commercial paper.
Wal-Mart last sold bonds in a $3 billion deal on June 30. The 2.25% five-year notes sold at 53 bps over Treasuries and the 3.625% 10-year notes in that sale sold at 70 bps over Treasuries. A 4.875% 30-year bond priced at 108 bps over Treasuries.
The discount retailer is based in Bentonville, Ark.
| Issuer: | Wal-Mart Stores Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $5 billion
|
| Bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch, Goldman Sachs & Co. (active), Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC (passive)
|
| Trade date: | Oct. 18
|
| Settlement date: | Oct. 25
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA
|
| Fitch: AA
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 25, 2013
|
| Coupon: | 0.75%
|
| Price: | 99.651
|
| Yield: | 0.866%
|
| Spread: | Treasuries plus 30 bps
|
| Price talk: | 30 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Oct. 25, 2015
|
| Coupon: | 1.5%
|
| Price: | 99.459
|
| Yield: | 1.613%
|
| Spread: | Treasuries plus 48 bps
|
| Price talk: | 50 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Oct. 25, 2020
|
| Coupon: | 3.25%
|
| Price: | 99.619
|
| Yield: | 3.295%
|
| Spread: | Treasuries plus 78 bps
|
| Price talk: | 75 to 80 bps
|
|
|
| 30-year bonds
|
| Amount: | $1.25 billion
|
| Maturity: | Oct. 25, 2040
|
| Coupon: | 5%
|
| Price: | 98.336
|
| Yield: | 5.109%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | 120 bps area
|
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