Summary
This 8-K filing from Wal-Mart Stores, Inc., dated March 11, 2002, reports on the company's completion of a significant debt offering. Specifically, Wal-Mart successfully sold $500 million in aggregate principal amount of 4.15% Notes due in 2005. This transaction was facilitated through J.P. Morgan Securities Inc. and involved several of Wal-Mart's Cayman Islands finance subsidiaries. For investors, this filing indicates Wal-Mart's ongoing strategy to access capital markets for funding. The issuance of notes with a 4.15% coupon rate provides insight into the cost of debt financing at that time. While this report does not detail the specific use of proceeds, such debt issuances are typically utilized for general corporate purposes, potential acquisitions, capital expenditures, or refinancing existing debt, all of which can impact the company's financial leverage and future growth prospects.
Key Highlights
- 1Wal-Mart Stores, Inc. completed the sale of $500,000,000 aggregate principal amount of 4.15% Notes Due 2005.
- 2The notes were sold on March 11, 2002, with J.P. Morgan Securities Inc. acting as the underwriter.
- 3The issuance was conducted pursuant to a Pricing Agreement dated March 4, 2002, which referenced an earlier Underwriting Agreement from July 26, 2001.
- 4The transaction involved Wal-Mart's Cayman Islands finance subsidiaries.
- 5The terms of the notes were established in accordance with an Indenture dated July 5, 2001, with Bank One Trust Company, NA, serving as Trustee.
- 6The filing also includes various exhibits related to the agreements and terms of the notes, such as the Underwriting Agreement, Pricing Agreement, and Series Terms Certificate.
- 7The report is signed by H. Lee Scott, President and Chief Executive Officer, indicating high-level corporate authorization for this financial transaction.