Published on 4/13/2023 in the Prospect News Investment Grade Daily.
New Issue: Walmart sells $5 billion five-tranche offering of notes
By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., April 13 – Walmart Inc. sold a $5 billion offering comprised of five tranches of notes (Aa2/AA/AA) on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The $750 million 4% notes due 2026 priced at 99.956 to yield 4.016%, or at Treasuries plus 30 basis points. Price talk was in the 60 bps to 65 bps area, a market source note.
The $750 million 3.9% notes due 2028 priced at 99.816 to yield 3.941%, or at Treasuries plus 47 bps. Talk was in the 75 bps to 80 bps area.
The $500 million 4% notes due 2030 priced at 99.807 to yield 4.032%, or at Treasuries plus 60 bps. Talk started in the 85 bps to 90 bps area.
The $1.5 billion 4.1% notes due 2033 priced at par, or at Treasuries plus 70 bps. Initial talk was in the 95 bps to 100 bps area.
Finally, the $1.5 billion 4.5% notes due 2053 priced at 99.723 to yield 4.517%, or at Treasuries plus 90 bps. Talk was initially in the 120 bps to 125 bps area.
The notes feature optional make-whole calls anytime until the relevant par call date.
In the case of the 2026 notes they are callable at Treasuries plus 5 bps until March 15, 2026, one month prior to maturity. The 2028 notes are callable at Treasuries plus 10 bps until March 15, 2028, also one month prior to maturity. The 2030 notes are callable at Treasuries plus 10 bps until Feb. 15, 2030, two months prior to maturity. The 2033 notes will feature a make-whole call at Treasuries plus 15 bps until Jan. 15, 2033, three months prior to maturity. The 2053 notes will be callable at Treasuries plus 15 bps until six months prior to maturity, or Oct. 15, 2052.
On and after these dates the notes will revert to a par call until maturity.
Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, BNP Paribas Securities Corp., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are joint bookrunners for the SEC-registered deal.
Proceeds will be used for general corporate purposes.
The discount retailer is based in Bentonville, Ark.
| Issuer: | Walmart Inc.
|
| Amount: | $5 billion
|
| Issue: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc. (D&I coordinator), Mizuho Securities USA LLC, BNP Paribas Securities Corp., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Senior co-managers: | Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities LLC
|
| Co-managers: | BBVA Securities Inc., NatWest Markets Securities Inc., Santander US Capital Markets LLC, 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., CastleOak Securities, LP, Guzman & Co., Independence Point Securities LLC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Hunton Andrews Kurth LLP
|
| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
|
| Pricing date: | April 12
|
| Settlement date: | April 18
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Fitch: AA
|
| Distribution: | SEC registered
|
|
|
| 2026 notes
|
| Amount: | $750 million
|
| Maturity: | April 15, 2026
|
| Coupon: | 4%
|
| Price: | 99.956
|
| Yield: | 4.016%
|
| Spread: | Treasuries plus 30 bps
|
| Call features: | Make-whole call at Treasuries plus 5 bps until March 15, 2026; thereafter at par
|
| Price talk: | Treasuries plus 60 bps to 65 bps area
|
| Cusip: | 931142FA6
|
|
|
| 2028 notes
|
| Amount: | $750 million
|
| Maturity: | April 15, 2028
|
| Coupon: | 3.9%
|
| Price: | 99.816
|
| Yield: | 3.941%
|
| Spread: | Treasuries plus 47 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps until March 15, 2028; after at par
|
| Price talk: | Treasuries plus 75 bps to 80 bps area
|
| Cusip: | 931142FB4
|
|
|
| 2030 notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2030
|
| Coupon: | 4%
|
| Price: | 99.807
|
| Yield: | 4.032%
|
| Spread: | Treasuries plus 60 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps until Feb. 15, 2030; after at par
|
| Price talk: | Treasuries plus 85 bps to 90 bps area
|
| Cusip: | 931142FC2
|
|
|
| 2033 notes
|
| Amount: | $1.5 billion
|
| Maturity: | April 15, 2033
|
| Coupon: | 4.1%
|
| Price: | Par
|
| Yield: | 4.1%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps until Jan. 15, 2033; after at par
|
| Price talk: | Treasuries plus 95 bps to 100 bps area
|
| Cusip: | 931142FD0
|
|
|
| 2053 notes
|
| Amount: | $1.5 billion
|
| Maturity: | April 15, 2053
|
| Coupon: | 4.5%
|
| Price: | 99.723
|
| Yield: | 4.517%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps until Oct. 15, 2052; after at par
|
| Price talk: | Treasuries plus 120 bps to 125 bps area
|
| Cusip: | 931142FE8
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
