Summary
Walmart Inc. (WMT) filed an 8-K on April 7, 2014, to report on the issuance of new debt securities. The company entered into a Pricing Agreement on April 1, 2014, to sell €850,000,000 of 1.900% Notes Due 2022 and €650,000,000 of 2.550% Notes Due 2026 to underwriters. These notes represent new series of senior, unsecured debt. The aggregate principal amount of the notes to be issued is €1.5 billion (approximately $2.06 billion USD based on the specified exchange rate). The net proceeds, after underwriting discounts but before other expenses, are expected to be approximately €1.488 billion (approximately $2.046 billion USD). The company intends to list these notes on the New York Stock Exchange. This issuance is part of Walmart's strategy to manage its capital structure and fund ongoing operations.
Key Highlights
- 1Walmart Inc. issued €1.5 billion in new debt consisting of 1.900% Notes Due 2022 (€850 million) and 2.550% Notes Due 2026 (€650 million).
- 2The issuance was conducted through a Pricing Agreement with several major financial institutions acting as underwriters.
- 3The notes are senior, unsecured debt securities and will rank equally with other senior unsecured obligations of the company.
- 4The expected closing date for the sale and purchase of the notes was April 8, 2014.
- 5The net proceeds from this offering are approximately €1.488 billion (or $2.046 billion USD).
- 6Application has been made to list the 2022 and 2026 Notes on the New York Stock Exchange.