Walmart to close $1.1 billion bond sale
Walmart is about to sell its entire $1 billion U.S. bond portfolio, a move that could have far-reaching financial consequences for the struggling U.K. retailer.
The deal, first reported by The Wall Street Journal on Monday, will result in Walmart selling a portion of its $3.5 billion bond portfolio for $1 in cash.
The sale of Walmart bonds is expected to be announced later this month, according to the Journal.
The move is expected, though it could come as soon as this week.
Walmart, the nation’s largest retailer, has been struggling for years as it has cut thousands of jobs, and it also has struggled with rising costs of food and energy.
In the past year, Walmart has announced it will close more than 200 stores and consolidate several of its other businesses.
The company’s debt is expected by some analysts to be as much as $1 trillion, and analysts at Morgan Stanley expect Walmart to need $2.5 trillion to meet its debt-service obligations, according the Journal article.