Summary
This 8-K filing by Wal-Mart Stores, Inc. (now Walmart Inc.) on April 14, 2008, announces the company's entry into a Pricing Agreement with several underwriters, including Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., and Greenwich Capital Markets, Inc., for the sale of new debt securities. The agreement covers $1 billion in 4.250% Notes Due 2013 and $1.5 billion in 6.200% Notes Due 2038, totaling $2.5 billion in aggregate principal amount. The primary purpose of this filing is to disclose the terms of this significant debt issuance, which is expected to be consummated on April 15, 2008. The net proceeds to Walmart from this offering are expected to be approximately $2.4765 billion after underwriting discounts but before transaction expenses. These new notes will be senior unsecured debt, ranking equally with other existing senior unsecured obligations of the company. This issuance provides insight into Walmart's capital raising activities and its approach to managing its debt structure.
Key Highlights
- 1Walmart entered into a Pricing Agreement on April 8, 2008, to issue $1 billion in 4.250% Notes Due 2013 and $1.5 billion in 6.200% Notes Due 2038.
- 2The total aggregate principal amount of the Notes being issued is $2.5 billion.
- 3The sale and purchase of the Notes were expected to be consummated on April 15, 2008.
- 4The net proceeds to Walmart from this offering are anticipated to be approximately $2.4765 billion after underwriting discounts.
- 5The issued Notes will be senior unsecured debt securities of the Company.
- 6These new Notes will rank equally with other senior unsecured debt obligations of the Company.
- 7The offering is made under the Company's effective Registration Statement on Form S-3.