Wal-Mart Stores Inc. issues $4 billion in new debt

Mass retailer Wal-Mart Stores Inc. recently secured $4 billion in new debt in two separate underwritings completed this month.

Wal-Mart outlined the details of three new debt instruments in its final prospectus filed with the Securities and Exchange Commission on Tuesday, April 15.

The retail giant issued $2.5 billion in new debt ranging in maturity from 2017 to 2044.
• $500 million at 1% due April 21, 2017
• $1 billion at 3.30% due April 21, 2024
• $1 billion at 4.30% due April 21, 2044

The net proceeds to Wal-Mart after settlement and underwriting fees will be $1.976 billion.

On April 1, Wal-Mart closed the deal on two new debt issues totaling $1.5 billion.
• $850 million at 1.9% due 2022
• $650 million at 2.55% due 2026

The net proceeds of this deal was $1.487 billion, after fees and commissions. Wal-Mart is applying for separate ratings on this shorter term debt.

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Wal-Mart will apply for specific ratings for the 2017, 2022, 2024, 2026 bonds. The retailer expects the 2044 bonds will carry the same ratings as its other long-term debt.
The ratings for Wal-Mart’s long-term debt securities are investment grade: “AA” by S&P and Fitch, while Moody’s gives a Aa2 rating.

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