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Walmart Latest To Tap Bond Market With $5bn Offerings

Walmart Inc will raise $5 billion in bond offerings, joining a host of big retailers and restaurant chains to tap the debt market ahead of the US 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 20-21 September, where the Fed is expected to decide on whether to go for another 75bp rate increase.

Investment-Grade Bond

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.

Massmart Buy Out 

Walmart Inc has signed an agreement to begin buying the 47% stake in South African retailer Massmart it does not own, the companies said in a joint statement.

Massmart had said that its majority owner Walmart had offered it 6.4 billion rand ($373 million) to purchase the remaining shares and to delist the company from the Johannesburg Stock Exchange.

The offer would allow Walmart to cut costs, invest more capital and turn around Massmart which has been posting losses and losing market share to bigger local rivals.

News by Reuters, edited by Donna Ahern, Checkout. For more retail stories, click here. Click subscribe to sign up for the Checkout print edition.

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