Summary
This 8-K filing by Wal-Mart Stores, Inc. (WMT) on January 29, 2008, announces the company's agreement to issue and sell $1.5 billion in aggregate principal amount of new senior unsecured debt securities. Specifically, Walmart will issue $750 million of 5.800% Notes due 2018 and $750 million of 6.500% Notes due 2037. The issuance is being conducted through a Pricing Agreement with several major underwriters, including Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Lehman Brothers Inc., and UBS Securities LLC. The sale is expected to close on January 30, 2008, and is anticipated to generate substantial net proceeds for Walmart, estimated at approximately $1.53 billion after underwriting discounts but before other transaction expenses. These new notes will be fungible with previously issued notes of the same series, increasing the aggregate principal amounts outstanding for the 2018 Series to $1.25 billion and for the 2037 Series to $3.0 billion. The funds raised will bolster Walmart's liquidity and financial flexibility.
Key Highlights
- 1Walmart Inc. (WMT) announced the issuance of $1.5 billion in new senior unsecured notes.
- 2The issuance comprises $750 million of 5.800% Notes due 2018 and $750 million of 6.500% Notes due 2037.
- 3The sale is expected to be completed on January 30, 2008.
- 4The aggregate net proceeds from the note issuance are estimated to be approximately $1.53 billion.
- 5These notes are being issued under Walmart's existing shelf registration statement.
- 6The new notes will be fungible with existing series, increasing total outstanding principal for the 2018 Series to $1.25 billion and the 2037 Series to $3.0 billion.
- 7The notes rank equally with all other senior, unsecured, and unsubordinated debt obligations of the company.