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iStar Financial Inc. Message Board

  • genetuck genetuck Oct 19, 2010 1:52 AM Flag


    Wal-Mart Stores Inc. priced a $5 billion, four-part bond offering Monday and tied a recent Microsoft Corp. issue for the lowest interest rates on record in three- and five-year unsecured corporate debt across those maturities.

    A $750 million, three-year tranche bearing a 0.75% coupon sold at a discount to yield 0.866%, or 0.30 percentage point above Treasurys, while a $1.25 billion five-year tranche with a coupon of 1.50% sold at a discount to yield 1.133%, or 0.48 percentage point above Treasurys.

    Microsoft came to market on Sept. 22 with a $4.75 billion bond sale. A $1 billion tranche of 0.875% three-year notes in that offering sold at a discount to yield 0.931%, or 0.25 percentage point above Treasurys, and a $1.75 billion chunk of five-year bonds bearing a 1.625% coupon priced to yield 1.717%, or 0.40 percentage point.
    (from the WSJ)

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    • Riskless assets are priceless, apparently.

      • 1 Reply to pimmoban
      • Further to Financing efforts-CMBS make a comeback. Sources said Goldman Sachs (GS) and Bank of America (BAC) are expected to sell in the next two weeks $3B of senior debt left over from the 2007 purchase of Hilton Worldwide by Blackstone Group (BX); the two banks had provided $20B of financing for the deal but were stuck holding the loans when debt markets froze. The offering will likely be followed by a $2B deal involving the Extended Stay hotel chain that recently exited bankruptcy. Taken together, the two deals would mark the largest issuance of commercial mortgage-backed securities since the financial crisis, reflecting a resurgence in the CMBS market.