Published on 9/7/2022 in the Prospect News Investment Grade Daily.
New Issue: Walmart sells $5 billion of notes in four tranches
By Cristal Cody
Chicago, Sept. 7 – Walmart Inc. used the Tuesday bond market activity to sell $5 billion of new notes across four tranches (Aa2/AA/AA), according to an FWP filing with the Securities and Exchange Commission.
The discount retailer allocated the bulk of the deal to its shortest-dated tranche, $1.75 billion of 3.9% notes due 2025 that priced at 99.93 to yield 3.925%, or with a spread of 35 basis points over the benchmark Treasury. Spread talk was in the 65 bps area, according to a market source.
The company sold $1 billion of 3.95% notes due 2027 at 99.784 to yield 3.998%, or at a spread of 55 bps over Treasuries versus talk in the 80 bps area.
The 10-year tranche priced as $1.25 billion of 4.15% notes at 99.692 to yield 4.188%, or at a spread of 85 bps over Treasuries versus talk in the 110 bps area.
The 30-year tranche was also for $1 billion. It priced with a 4.5% coupon at 99.951 to yield 4.503%, or with a 100 bps spread over Treasuries. Spread talk was in the 130 bps area.
For the notes due 2025, there is a make-whole call all the way until maturity at Treasuries plus 10 bps.
The other three notes have make-whole call options and then par calls. The 2027 notes have a make-whole premium of Treasuries plus 10 bps until the par call date of Aug. 9, 2027. The 2032 notes also have a make-whole premium of Treasuries plus 15 bps until the par call date of June 9, 2032. And, the 2052 notes have a make-whole call option at Treasuries plus 20 bps until the par call date of March 9, 2052.
Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC are acting as joint bookrunners for the SEC-registered deal.
Proceeds will be used for general corporate purposes.
The issuer is based in Bentonville, Ark.
| Issuer: | Walmart Inc.
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| Amount: | $5 billion
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| Issue: | Notes
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| Bookrunners: | Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC
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| Senior co-managers: | BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc.
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| Co-managers: | BBVA Securities Inc., NatWest Markets Securities Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc, SMBC Nikko Securities America, Inc., Standard Chartered Bank, TD Securities (USA) LLC, ICBC Standard Bank plc, Loop Capital Markets LLC, Academy Securities, Inc., AmeriVet Securities, Inc., Blaylock Van, LLC, C.L. King & Associates, Inc. and R. Seelaus & Co., LLC
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Hunton Andrews Kurth LLP
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Trade date: | Sept. 6
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| Settlement date: | Sept. 9
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| Ratings: | Moody’s: Aa2
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| S&P: AA
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| Fitch: AA
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| Distribution: | SEC registered
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| 2025 notes
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| Amount: | $1.75 billion
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| Maturity: | Sept. 9, 2025
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| Coupon: | 3.9%
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| Price: | 99.93
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| Yield: | 3.925%
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| Spread: | Treasuries plus 35 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps
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| Price talk: | Treasuries plus 65 bps area
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| Cusip: | 931142EW9
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|
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| 2027 notes
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| Amount: | $1 billion
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| Maturity: | Sept. 9, 2027
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| Coupon: | 3.95%
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| Price: | 99.784
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| Yield: | 3.998%
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| Spread: | Treasuries plus 55 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps until Aug. 9, 2027; thereafter at par
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| Price talk: | Treasuries plus 80 bps area
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| Cusip: | 931142EX7
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|
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| 2032 notes
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| Amount: | $1.25 billion
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| Maturity: | Sept. 9, 2032
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| Coupon: | 4.15%
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| Price: | 99.692
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| Yield: | 4.188%
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| Spread: | Treasuries plus 85 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps until June 9, 2032; thereafter at par
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| Price talk: | Treasuries plus 110 bps area
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| Cusip: | 931142EY5
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|
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| 2052 notes
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| Amount: | $1 billion
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| Maturity: | Sept. 9, 2052
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| Coupon: | 4.5%
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| Price: | 99.951
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| Yield: | 4.503%
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| Spread: | Treasuries plus 100 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps until March 9, 2052; thereafter at par
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| Price talk: | Treasuries plus 130 bps area
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| Cusip: | 931142EZ2
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