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Wal-Mart commences cash tender offer for up to $8.5B of notes


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Wal-Mart commences cash tender offer for up to $8.5B of notes

Wal-Mart Stores Inc. said Oct. 6 it has commenced a cash tender offer for up to $8.5 billion of certain debt securities.

The offer, which expires at 11:59 p.m. ET on Nov. 3, 2017, applies to 13 different categories of notes of varying maturity dates.

The retailer said it is making the tender offer to reduce its interest expense and take advantage of the favorable interest rate environment. The company said it expects to record a charge for the "discrete" transaction as it did for a similar transaction in July.

Moody’s Lead Retail Analyst Charlie O’Shea said the move is credit positive for the retailer as the long-term benefits from the savings on interest will outweigh the short-term cost of the transaction. “Taking this proactive step to take advantage of a favorable interest rate environment reflects prudent balance sheet management," he said.