By Andrea Heisinger
New York, April 4 - Wal-Mart Stores Inc. priced $5 billion of notes (Aa2/AA/AA) in four maturities on Thursday, an informed source said.
The size was increased from an initial $4 billion.
A $1 billion tranche of 0.6% three-year notes sold at 99.929 to yield 0.624% with a spread of Treasuries plus 30 basis points. Initial talk was in the mid 30 bps area.
There was $1.25 billion of 1.125% five-year notes priced at 99.908 to yield 1.144% with a spread of 45 bps over Treasuries. Whispered talk was in the mid 50 bps area.
There is no call option for the notes due 2016 and 2018.
A $1.75 billion tranche of 2.55% 10-year notes sold at 99.772 to yield 2.576% with a spread of Treasuries plus 82 bps. Initial whispers were in the mid to high 80 bps area.
The 10-year notes are callable at par plus accrued and unpaid interest on or after Jan. 11, 2023.
Finally, there was $1 billion of 4% 30-year bonds priced at 99.653 to yield 4.02% with a spread of Treasuries plus 102 bps. Whispered talk was in the 105 bps to 110 bps range.
The bonds are callable at par plus accrued and unpaid interest on or after Oct. 11, 2042.
Bookrunners were Barclays, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC.
Proceeds will be used for general corporate purposes.
Wal-Mart was last in the U.S. bond market with a similar $5 billion offering in four tranches on April 11, 2011. That trade included 1.625% three-year notes sold at 40 bps over Treasuries, 2.8% five-year bonds priced at Treasuries plus 57 bps, 4.25% 10-year notes sold at 75 bps over Treasuries and 5.625% 30-year bonds priced at 110 bps over Treasuries.
The discount retailer is based in Bentonville, Ark.
| Issuer: | Wal-Mart Stores Inc.
|
| Issue: | Notes
|
| Amount: | $5 billion, upsized from $4 billion
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC
|
| Trade date: | April 4
|
| Settlement date: | April 11
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA
|
| Fitch: AA
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 11, 2016
|
| Coupon: | 0.6%
|
| Price: | 99.929
|
| Yield: | 0.624%
|
| Spread: | Treasuries plus 30 bps
|
| Call: | Non-callable
|
| Price talk: | Mid 30 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion, upsized from $1 billion
|
| Maturity: | April 11, 2018
|
| Coupon: | 1.125%
|
| Price: | 99.908
|
| Yield: | 1.144%
|
| Spread: | Treasuries plus 45 bps
|
| Call: | Non-callable
|
| Price talk: | Mid 50 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion, upsized from $1 billion
|
| Maturity: | April 11, 2023
|
| Coupon: | 2.55%
|
| Price: | 99.772
|
| Yield: | 2.576%
|
| Spread: | Treasuries plus 82 bps
|
| Call: | At par plus accrued and unpaid interest on or after Jan. 11, 2023
|
| Price talk: | Mid to high 80 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | April 11, 2043
|
| Coupon: | 4%
|
| Price: | 99.653
|
| Yield: | 4.02%
|
| Spread: | Treasuries plus 102 bps
|
| Call: | At par plus accrued and unpaid interest on or after Oct. 11, 2042
|
| Price talk: | 105 bps to 110 bps
|
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