BENTONVILLE, Ark. — Walmart seeks to raise $5 billion in operating capital through four separate bond issues ahead of expected Federal Reserve interest rate hike. Also, the Bentonville-based retailer announced Wednesday (Sept. 7) a partnership with UnitedHealth Group.
A filing with the U.S. Securities and Exchange Commission showed the bonds include $1.75 billion at 3.9% due in 2025, $1 billion at 3.95% due in 2027, $1.25 billion at 4.15% due 2032 and $1 billion at 4.5% due 2052. Walmart should net roughly $4.971 billion from the bonds. Walmart debt is rated AA by Standard & Poor’s and Aa2 by Moody’s, each seen as Prime credit level quality.
Other retailers have also issued debt to raise capital ahead of higher interest rates many think are coming when the Federal Open Market Committee meets Sept 20. Wall Street expects the Fed to raise rates 0.75% following the meeting. Target recently issued $1 billion in bonds due in 2032, and McDonald’s announced bond issues totaling $1.5 billion due in 2032 and 2052. In April, Amazon sold $12.75 billion of investment-grade bonds for general corporate purposes.
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