Summary
This Form 8-K filing by Wal-Mart Stores, Inc. (WMT) on August 29, 2005, reports on the company's agreement to sell $2.5 billion in aggregate principal amount of 5.25% Senior Notes due 2035 to a group of underwriters. The sale, finalized on August 31, 2005, is part of a broader shelf registration statement allowing for the issuance of up to $5 billion in debt securities. This issuance of long-term debt aims to raise capital, the specific uses of which are not detailed in this particular filing, but it represents a significant financing event for the company.
Key Highlights
- 1Wal-Mart Stores, Inc. entered into a Pricing Agreement on August 24, 2005, to sell $2.5 billion in 5.25% Notes Due 2035.
- 2The sale to underwriters was scheduled for August 31, 2005.
- 3The Notes are senior, unsecured debt securities.
- 4The aggregate issue price for the Notes was $2,489,500,000.
- 5The net proceeds to the Company are estimated to be $2,467,625,000 before other transaction expenses.
- 6This debt issuance is made under a shelf registration statement (Form S-3) filed earlier, allowing for up to $5 billion in debt securities.
- 7The Notes will be represented by global notes in book-entry form, payable to CEDE & Co., as nominee for The Depository Trust Company.
Frequently Asked Questions
The primary purpose of this 8-K filing is to report on the details of Wal-Mart's agreement to issue and sell $2.5 billion of its 5.25% Senior Notes due 2035 to a syndicate of underwriters.
Wal-Mart is issuing $2.5 billion in aggregate principal amount of 5.25% Senior Notes due 2035. These are senior, unsecured debt securities. The notes were sold to the public at an issue price of 99.580% of their principal amount.
The company expected to receive net proceeds of approximately $2,467,625,000 from the sale of the notes, after accounting for the underwriting discount but before other transaction expenses.
No, this issuance is made pursuant to a previously filed shelf registration statement on Form S-3 (File No. 333-126512), which allows the company to offer and sell up to $5 billion of its debt securities over time. This 8-K is reporting on a specific tranche of that debt.