Woolworths shopping around in Australian dollar bond market
Woollies has mandated two Japanese banks and two Australian lenders to manage a potential new bond issue.
Supermarket giant Woolworths is taking expressions of interest from the Australian bond market, looking for seven and a half-year fixed-rate bonds that have an initial price guidance in the 155 basis points (bps) area, according to a term sheet seen by Capital Brief.
The $46 billion ASX-listed retailer held calls with bond investors on Tuesday, according to three sources who saw distribution documents, and use of proceeds will be to get the company ahead of a $400 million worth of debt due April 2025, according to a company spokesperson.
Two bond market sources who are reviewing the potential issue expect the bonds to price cheaper than 155 bps.
Japanese banks Mizuho and MUFG, alongside NAB and ANZ, have been mandated joint lead arrangers of the potential bond issue, meaning Japanese banks may be underwriters if the transaction is successful, the sources said.
