By John Balassi
NEW YORK, April 4 (IFR) - WalMart Stores on Thursday
launched a $5 billion four-part bond issue with a similar
structure to a deal the company did in 2011.
The world's biggest retailer is planning to sell $1 billion
of three-year notes at Treasuries plus 30 basis points, $1.25
billion of five-year notes at Treasuries plus 45bp, $1.75
billion of 10-year notes at Treasuries plus 82bp and $1 billion
of 30-year notes at plus 102bp. The shorter tranches were
slightly tighter than initial price thoughts.
Proceeds of the deal, led by active joint books Barclays,
Citigroup and Morgan Stanley, will be used for general corporate
WalMart, rated Aa2/AA/AA, last came to the dollar
market on April 11, 2011 with a $5 billion four-part offering.
That deal consisted of a $1 billion 1.625% three-year at
plus 40bp, a $1 billion 2.8% five-year at plus 57bp, a $1
billion 4.25% 10-year at plus 75bp, and a $2 billion 5.625%
30-year at plus 110bp.
Despite a more aggressive share purchase program and an 18%
increase in its dividend rate funded in part by additional debt,
WalMart's credit quality remains strong and stable.
The company should have little trouble absorbing whatever
penalties are ultimately imposed from the bribery accusations at
WalMart de Mexico, according to independent research firm