Published on 9/9/2021 in the Prospect News Investment Grade Daily.
New Issue: Walmart details $5 billion four-part sale of fixed-rate notes
By Cristal Cody
Chicago, Sept. 9 – Walmart Inc. priced $5 billion of notes in four parts on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $1.25 billion of five-year notes at 99.811 to yield 1.089%, or a spread of Treasuries plus 28 basis points. A market source had seen the notes talked in the Treasuries plus 55 bps area on Wednesday morning.
Walmart also sold $1.25 billion 1.5% seven-year notes with a 99.894 discount to yield 1.516%. The notes priced with a spread of 40 bps over Treasuries, low to talk in the Treasuries plus 65 bps area.
A third tranche of $1 billion 20-year notes was sold at par to yield 2.5%. The notes priced with a spread to the benchmark Treasury of 62 bps. Talk had the notes expected in the Treasuries plus 85 bps area.
The longest-dated 30-year tranche was sized at $1.5 billion of 2.65% notes. The notes were sold at 99.63 to yield 2.668%, or with a spread of Treasuries plus 72 bps after being talked in the Treasuries plus 95 bps area.
The notes have make-whole calls until several dates before their respective maturities with premiums that start at Treasuries plus 5 bps for the earliest maturing notes, 10 bps for both of the middle-date notes and 15 bps for the 40-year notes.
The company also sold $2 billion of 1.8% green notes due 2031 on Wednesday.
Citigroup Global Markets Inc., Mizuho Securities USA LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are joint bookrunners for the four-part deal.
Proceeds will be used for a concurrent tender offer. Any remaining funds will be used for general corporate purposes.
The discount retailer is based in Bentonville, Ark.
| Issuer: | Walmart Inc.
|
| Issue: | Notes
|
| Amount: | $5 billion
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| Bookrunners: | Citigroup Global Markets Inc., Mizuho Securities USA LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Senior co-managers: | BBVA Securities Inc., Goldman Sachs & Co. LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., Standard Chartered Bank and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, NatWest Markets Securities Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Academy Securities, Inc., CastleOak Securities, LP, Guzman & Co., ICBC Standard Bank plc, Lloyds Securities Inc. and Loop Capital Markets LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Hunton Andrews Kurth LLP
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
|
| Trade date: | Sept. 8
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
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| Fitch: AA
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| Distribution: | SEC registered
|
|
|
| 2026 notes
|
| Amount: | $1.25 billion
|
| Maturity: | Sept. 17, 2026
|
| Coupon: | 1.05%
|
| Price: | 99.811
|
| Yield: | 1.089%
|
| Spread: | Treasuries plus 28 bps
|
| Call features: | Make-whole call at Treasuries plus 5 bps until Aug. 17, 2026; thereafter at par
|
| Settlement date: | Sept. 17
|
| Price talk: | Treasuries plus 55 bps area
|
| Cusip: | 931142ER0
|
|
|
| 2028 notes
|
| Amount: | $1.25 billion
|
| Maturity: | Sept. 22, 2028
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| Coupon: | 1.5%
|
| Price: | 99.894
|
| Yield: | 1.516%
|
| Spread: | Treasuries plus 40 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps until July 22, 2028; thereafter at par
|
| Settlement date: | Sept. 22
|
| Price talk: | Treasuries plus 65 bps area
|
| Cusip: | 931142ES8
|
|
|
| 2041 notes
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| Amount: | $1 billion
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| Maturity: | Sept. 22, 2041
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| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Spread: | Treasuries plus 62 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps until March 22, 2041; thereafter at par
|
| Settlement date: | Sept. 22
|
| Price talk: | Treasuries plus 85 bps area
|
| Cusip: | 931142EU3
|
|
|
| 2051 notes
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| Amount: | $1.5 billion
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| Maturity: | Sept. 22, 2051
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| Coupon: | 2.65%
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| Price: | 99.63
|
| Yield: | 2.668%
|
| Spread: | Treasuries plus 72 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps until March 22, 2051; thereafter at par
|
| Settlement date: | Sept. 22
|
| Price talk: | Treasuries plus 95 bps area
|
| Cusip: | 931142EV1
|
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