Summary
This 8-K filing from Wal-Mart Stores, Inc. on February 24, 2003, reports on the significant event of the company completing the sale of $1.5 billion aggregate principal amount of Floating Rate Notes Due 2005. These notes were sold to Morgan Stanley & Co. Incorporated and represent the entirety of the newly created 2005 Floating Rate Series. The issuance was conducted under an Indenture dated December 11, 2002, with Bank One Trust Company, NA, as Trustee, and was facilitated by a Pricing Agreement and Underwriting Agreement, both dated February 18, 2003. For investors, this transaction indicates Wal-Mart's ongoing need for and access to substantial capital markets funding. The issuance of floating rate notes suggests a strategy to manage interest rate exposure, potentially hedging against rising rates at the time. The significant principal amount highlights the company's scale and its capacity to undertake large financing operations to support its growth or operational needs. The filing also provides details on the contractual agreements and legal opinions related to this debt issuance.
Key Highlights
- 1Wal-Mart Stores, Inc. successfully issued $1.5 billion in Floating Rate Notes Due 2005.
- 2The issuance was completed on February 21, 2003, with Morgan Stanley & Co. Incorporated acting as the underwriter.
- 3These notes constitute the entire initial issuance of the newly created '2005 Floating Rate Series'.
- 4The debt issuance is governed by an Indenture dated December 11, 2002, with Bank One Trust Company, NA, as Trustee.
- 5Key agreements related to the offering include a Pricing Agreement and an Underwriting Agreement, both dated February 18, 2003.
- 6The notes were delivered in the form of three global notes, each with a principal amount of $500,000,000.
- 7The filing includes various exhibits such as the pricing and underwriting agreements, series terms certificate, form of global note, and a legality opinion.