By Cristal Cody
Tupelo, Miss., June 20 – Walmart Inc. priced $16 billion of senior notes (Aa2/AA/AA) in nine tranches on Wednesday, surpassing initial expectations of about $10 billion of new paper, according to a market source.
The company sold $750 million of two-year floating-rate notes at Libor plus 4 basis points and $1.25 billion of 2.85% two-year fixed-rate notes at a spread of Treasuries plus 30 bps.
The $750 million tranche of three-year floating-rate notes priced at Libor plus 23 bps, while the $1.75 billion of 3.125% three-year fixed-rate notes were placed at a Treasuries plus 45 bps spread.
The $2.75 billion of 3.4% five-year notes came at a 60 bps spread over Treasuries.
A $1.5 billion tranche of 3.55% seven-year notes priced at a Treasuries plus 70 bps spread.
Walmart sold $2.75 billion of 3.7% 10-year notes with a Treasuries plus 80 bps spread.
A $1.5 billion 3.95% 20-year tranche of notes priced at a spread of 95 bps over Treasuries.
The final $3 billion of 4.05% 30-year bonds priced at a Treasuries plus 105 bps spread.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, HSBC Securities (USA) Inc. and Wells Fargo Securities LLC were the bookrunners.
The company held fixed income investor calls on Monday.
Proceeds will be used for a portion of the approximately $16 billion purchase price for the company’s planned acquisition of 77% of the common stock of Flipkart Private Ltd. and, if not used for the acquisition, for general corporate purposes, including to redeem all of the company’s outstanding 2021 floating-rate notes, 2021 fixed-rate notes, 2023 notes, 2028 notes and 2038 notes in a special mandatory redemption.
The discount retailer is based in Bentonville, Ark.
| Issuer: | Walmart Inc.
|
| Amount: | $16 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, HSBC Securities (USA) Inc. and Wells Fargo Securities LLC
|
| Trade date: | June 20
|
| Ratings: | Moody’s: Aa2
|
| S&P: AA
|
| Fitch: AA
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Two-year floaters
|
| Amount: | $750 million
|
| Maturity: | June 23, 2020
|
| Description: | Floating-rate notes
|
| Coupon: | Libor plus 4 bps
|
|
|
| Two-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 23, 2020
|
| Description: | Fixed-rate notes
|
| Coupon: | 2.85%
|
| Spread: | Treasuries plus 30 bps
|
|
|
| Three-year floaters
|
| Amount: | $750 million
|
| Maturity: | June 23, 2021
|
| Description: | Floating-rate notes
|
| Coupon: | Libor plus 23 bps
|
|
|
| Three-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | June 23, 2021
|
| Description: | Fixed-rate notes
|
| Coupon: | 3.125%
|
| Spread: | Treasuries plus 45 bps
|
|
|
| Five-year notes
|
| Amount: | $2.75 billion
|
| Maturity: | June 26, 2023
|
| Description: | Fixed-rate notes
|
| Coupon: | 3.4%
|
| Spread: | Treasuries plus 60 bps
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 26, 2025
|
| Description: | Fixed-rate notes
|
| Coupon: | 3.55%
|
| Spread: | Treasuries plus 70 bps
|
|
|
| 10-year notes
|
| Amount: | $2.75 billion
|
| Maturity: | June 26, 2028
|
| Description: | Fixed-rate notes
|
| Coupon: | 3.7%
|
| Spread: | Treasuries plus 80 bps
|
|
|
| 20-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 28, 2038
|
| Description: | Fixed-rate notes
|
| Coupon: | 3.95%
|
| Spread: | Treasuries plus 95 bps
|
|
|
| 30-year notes
|
| Amount: | $3 billion
|
| Maturity: | June 29, 2048
|
| Description: | Fixed-rate notes
|
| Coupon: | 4.05%
|
| Spread: | Treasuries plus 105 bps
|
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