August 25, 2005

$2.5B in in 30 Year Bonds

Anybody have any idea what Wal-Mart planned to do with the $2.5 Billion in cash it received in its 30 year bond sale?

The bonds were expected to yield 0.87-0.89 more than treasuries, and Wal-Mart's bond rating was expected to hold at "Aa2" by Moody's and "AA" by S&P. It actually did a smidgin better than that:

Trading in the supermarket’s existing paper on Tuesday saw spreads creep in on its 2015 notes by 1bp to about 57bp over Treasuries, according to MarketAxess. But spreads on its 2030 bonds were unchanged at 83bp over Treasuries. The deal is being led by Lehman Brothers, Credit Suisse First Boston and JPMorgan.

Posted by Kevin on August, 25 2005 at 08:15 AM