Walmart Inc. will raise $5 billion in bond issues, following a number of other major retailers and restaurant chains in taking advantage of the debt market before the next likely rate increase by the US Federal Reserve.
According to a company filing on Wednesday, the bonds’ maturity dates range from 2025 to 2052, and their coupon rates range from 3.9% to 4.5%.
On September 20-21, the Federal Open Market Committee will meet, and it is anticipated that the Fed will determine whether to proceed with another 75bp rate increase.
At least 19 investment-grade bond offerings were anticipated to price, according to IFR, on Tuesday as issuers and investors prepared for what was anticipated to be a hectic post-Labor Day day.
The firms reported their respective offerings in separate filings on Tuesday.
Target Corp. is issuing $1 billion in notes due 2032, and McDonald’s Corp. is offering around $1.5 billion in two-part bonds due 2052 and 2032.
Separately, Dollar General priced four-part senior notes for $2.3 billion, and Lowe’s Cos Inc. announced the pricing of four-part notes offering valued at $4.75 billion.