Summary
Walmart Inc. (WMT) filed an 8-K on March 26, 2009, reporting on a significant debt issuance. The company entered into a Pricing Agreement with several prominent underwriters, including Goldman Sachs International and Citigroup Global Markets Limited, to sell £1,000,000,000 aggregate principal amount of 5.625% Notes Due 2034. This issuance is designed to raise capital for the company, with net proceeds expected to be approximately £983,560,000 (equivalent to US$1,434,423,904 based on the then-current exchange rate). The newly issued notes are senior unsecured debt, ranking equally with other unsecured debt obligations of Walmart. These notes are part of a newly created series and will be governed by the company's existing Indenture with The Bank of New York Mellon Trust Company, N.A. The issuance has been admitted to trading on the Irish Stock Exchange, indicating a global market approach for this capital raise. The majority of the notes were offered and sold outside the United States in reliance on Regulation S, with a portion potentially available for resale in the U.S. under the company's existing Form S-3 shelf registration statement.
Key Highlights
- 1Walmart Inc. issued £1 billion in 5.625% Notes Due 2034.
- 2The issuance was conducted through a Pricing Agreement with a syndicate of international underwriters.
- 3Net proceeds from the sale are expected to be approximately £983.56 million.
- 4The Notes are senior unsecured debt obligations of the company.
- 5The Notes have been admitted to the Official List of the Irish Stock Exchange.
- 6A substantial portion of the Notes were offered and sold outside the United States under Regulation S.
- 7The issuance aims to bolster Walmart's capital structure and fund its operations.