Walmart latest to tap bond market with $5 billion offerings

BY Reuters | CORPORATE | 09/07/22 06:22 AM EDT

(Reuters) -Walmart Inc (WMT) will raise $5 billion in bond offerings, joining a host of big retailers and restaurant chains to tap the debt market ahead of the U.S. Federal Reserve's next potential rate move.

A company filing showed on Wednesday that its bonds will be due between 2025 and 2052 and have a coupon rate of between 3.9% and 4.5%.

The Federal Open Market Committee Meeting is scheduled for September 20-21, where the Fed is expected to decide on whether to go for another 75bp rate increase.

IFR reported on Tuesday that at least 19 investment-grade bond deals were expected to price, as issuers and investors get ready for what is expected to be a busy post-Labor Day session.

Target Corp is offering $1 billion in notes due 2032, while McDonald's Corp is offering about $1.5 billion in two-part bonds due 2052 and 2032, the companies disclosed in separate filings on Tuesday.

Separately, Lowe's Cos Inc also announced the pricing of a four-part notes offering at $4.75 billion and Dollar General priced four-part senior notes worth $2.3 billion.

(Reporting by Uday Sampath and Mehr Bedi in Bengaluru; Editing by Sherry Jacob-Phillips and Anil D'Silva)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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