S-3: Registration statement for specified transactions by certain issuers
Published on July 6, 2001
As filed with the Securities and Exchange Commission on July 6, 2001
Registration No. 333-______
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
WAL-MART STORES, INC.
(Exact name of registrant as specified in its charter)
____________________________________________
702 S.W. Eighth Street
Bentonville, Arkansas 72716
(501) 273-4000
(Address, including zip code, and telephone number,
including area code, of each Registrant's
principal executive offices)
_______________
ALLISON D. GARRETT, ESQ.
VICE PRESIDENT AND ASSISTANT GENERAL COUNSEL
Wal-Mart Stores, Inc.
702 S.W. Eighth Street
Bentonville, Arkansas 72716
(501) 273-4505
(Name, address, and telephone number,
including area code, of agent for service)
______________
Copies to:
DUDLEY W. MURREY, ESQ.
Hughes & Luce, L.L.P.
1717 Main Street, Suite 2800
Dallas, Texas 75201
(214) 939-5500
Approximate date of commencement of proposed sale of the securities to the
public: From time to time after the effective date of this Registration
Statement.
If the only securities being registered on this Form are being offered pursuant
to dividend or interest reinvestment plans, please check the following box: [_]
If any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box: [X]
If this Form is filed to register additional securities for an offering pursuant
to Rule 462(b) under the Securities Act, please check the following box and list
the Securities Act registration statement number of the earlier effective
registration statement for the same offering. [_]
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under
the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [_]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box: [_]
____________________________
1. The proposed maximum offering price per unit will be determined from time
to time by the registrants in connection with the issuance by the
registrants of the securities registered hereunder.
2. Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(o) under the Securities Act of 1933 as amended. The
aggregate public offering price of all the debt securities offered
hereunder will not exceed an aggregate of $6,000,000,000, including, in the
case of any debt securities issued hereunder that are denominated in any
currency other than United States dollars, the amount in United States
dollars equivalent to the principal amount on the date of issuance of the
debt securities in one or more foreign currencies, foreign currency units
or composite currencies. That amount represents the offering price of all
debt securities to be issued, and is not calculated based on the principal
amount of any debt securities to be issued at an original issue discount.
3. Pursuant to Rule 429 under the Securities Act of 1933, as amended, and
Interpretation D.85 of the Securities and Exchange Commission's Telephone
Interpretation Manual, the registration fee for a total of $700,100,000 of
debt securities of Wal-Mart Stores, Inc. is being carried forward from
Wal-Mart Stores, Inc.'s Registration Statements on Form S-3, Registration
Nos. 333-52045 and 333-82909. The amounts of the registration fees that
were paid with those registration statements in respect of securities that
have not been sold are $147,707 and $55,433, respectively. The amount of
the registration fee included in the table is the total fee payable with
respect to the debt securities being registered. The amount of the
registration fee to be paid at the time the registrants file this
registration statement will be $1,296,860.00.
4. Includes debt securities to be issued, from time to time, by one or more of
the registrants and including, for each of the registrants, such
indeterminate principal amount of debt securities as may from time to time
be issued by each such registrant at indeterminate prices.
5. Wal-Mart Stores, Inc. is also registering under this registration statement
the guarantees that it will issue with respect to any debt securities that
may be issued by Wal-Mart Cayman (Euro) Finance Co., Wal-Mart Cayman
(Canadian) Finance Co. and Wal-Mart Cayman (Sterling) Finance Co. No
separate consideration will be received for any guarantees issued by
Wal-Mart Stores, Inc. in connection with any such debt securities.
The Registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the Registrant shall file
a further amendment that specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until this Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
NOTE
This Registration Statement contains two prospectuses to be used in
connection with offerings of the following securities:
The first prospectus relates to the offer and sale of debt securities of
Wal-Mart Stores, Inc. on a delayed basis pursuant to Rule 415.
The second prospectus relates to the offer and sale of debt
securities of one or more of the following subsidiaries of Wal-Mart Stores,
Inc.: Wal-Mart Cayman (Euro) Finance Co., Wal-Mart Cayman (Canadian)
Finance Co., and Wal-Mart Cayman (Sterling) Finance Co., which debt
securities will be unconditionally and irrevocably guaranteed by Wal-Mart
Stores, Inc. and will be offered and sold on a delayed basis pursuant to
Rule 415.
Under the shelf registration process, one or more of Wal-Mart Sores, Inc.,
Wal-Mart Cayman (Euro) Finance Co., Wal-Mart Cayman (Canadian) Finance Co., and
Wal-Mart Cayman (Sterling) Finance Co. may offer for sale and sell any
combination of the debt securities described in the two prospectuses in one or
more offerings, which offerings will have a total aggregate offering price of up
to $6,000,000,000.
********************************************************************************
*The information in this prospectus is not complete and may be changed. This *
*prospectus is not an offer to sell these securities or our solicitation of *
*your offer to buy these securities, nor will we sell them or accept your offer*
*to buy them, in any state or other jurisdiction where that would not be *
*permitted or legal prior to registration or qualification in that state or *
*other jurisdiction. We may not sell these securities until the registration *
*statement filed with the Securities and Exchange Commission is effective. *
********************************************************************************
SUBJECT TO COMPLETION, DATED JULY 6, 2001
PROSPECTUS
WAL-MART STORES, INC.
$6,000,000,000
DEBT SECURITIES
This prospectus forms part of a shelf registration statement that we and
certain of our subsidiaries filed with the Securities and Exchange Commission.
We may use that registration statement to offer and sell, in one or more
offerings at various times, up to a total of $6,000,000,000 of our debt
securities. As described in a separate prospectus, that registration statement
also registers the offer and sale of debt securities by three of our finance
subsidiaries, Wal-Mart Cayman (Euro) Finance Co., Wal-Mart Cayman (Canadian)
Finance Co. and Wal-Mart Cayman (Sterling ) Finance Co. The offer and sale of
debt securities by one or more of those subsidiaries pursuant to that separate
prospectus and any related prospectus supplements will reduce the amount of debt
securities that we can offer and sell under this prospectus.
We may offer and sell debt securities in different series that have
different terms and conditions. This prospectus provides you with a general
description of certain material terms of those debt securities. When we sell a
particular series of the debt securities, we will provide a prospectus
supplement describing the specific terms and conditions of that series of debt
securities, including:
. the public offering price;
. the maturity date;
. the interest rate or rates, which may be fixed or variable;
. the times for payment of principal, interest and any premium; and
. any redemption provisions of the debt securities in the series.
The particular prospectus supplement may also contain important information
about U.S. federal income tax consequences and, in certain circumstances,
consequences under other countries' tax laws to which you may become subject if
you acquire the debt securities being offered by that prospectus supplement. The
prospectus supplement may also update or change information contained in this
prospectus.
THIS PROSPECTUS MAY NOT BE USED TO SELL SECURITIES UNLESS ACCOMPANIED BY A
PROSPECTUS SUPPLEMENT.
You should read carefully both this prospectus and any prospectus
supplement together with the additional information described under the heading
"Where You Can Find More Information" before making your investment decision.
We maintain our principal executive offices at:
702 S.W. 8/th/ Street, Mail Stop 0290
Bentonville, Arkansas 72716
Telephone: (501) 273-4000.
Neither the Securities and Exchange Commission nor any state securities
commission or other regulatory body has approved or disapproved of these
securities or determined if this prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.
The date of this Prospectus is July __, 2001.
TABLE OF CONTENTS
You should rely only on the information contained or incorporated by
reference in this prospectus and in any accompanying prospectus supplement. We
have not authorized anyone to provide you with different information.
We are not offering the debt securities in any jurisdiction in which the
offer is not permitted.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other
information with the SEC. Instead of repeating the information that we have
already filed with the SEC, the SEC allows us to "incorporate by reference" in
this prospectus information contained in documents we have filed with the SEC.
Those documents form an important part of this prospectus. Any documents that we
file with the SEC in the future will also be considered to be part of this
prospectus and will automatically update and supersede the information contained
in this prospectus.
We incorporate by reference in this prospectus the documents listed below
and any future filings we make with the SEC under Sections 13(a), 13(c), 14 or
15(d) of the Securities Exchange Act of 1934 until we complete or terminate the
offering of debt securities by this prospectus.
. Wal-Mart's Annual Report on Form 10-K for its fiscal year ended
January 31, 2001, as amended.
. Wal-Mart's Quarterly Report on Form 10-Q for its fiscal quarter ended
April 30, 2001.
. Wal-Mart's Current Report on Form 8-K dated May 9, 2001.
As allowed by the SEC's rules, we have not included in this prospectus all
of the information that is included in the registration statement. At your
request we will provide you, free of charge, with a copy of the registration
statement, any of the exhibits to the registration statement or a copy of any
other information we have incorporated by reference into the registration
statement. If you want more information, write in care of or call:
Allison D. Garrett, Esq.
Vice President and Assistant General Counsel
Wal-Mart Stores, Inc.
Corporate Offices
702 S.W. 8/th/ Street, Mail Stop 0290
Bentonville, Arkansas 72716
Telephone: (501) 273-4505
You may also obtain a copy of any filing we have made with the SEC directly
from the SEC. You may either:
. read and copy any materials we file with the SEC at the SEC's public
reference rooms at 450 Fifth Street, N.W., Washington, D.C. 20549 and
at its offices in New York, New York at 7 World Trade Center, Suite
1300, New York, New York 10048, and Chicago, Illinois at Citicorp
Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661-
2511; or
. visit the SEC's Internet site at http://www.sec.gov, which contains
reports, proxy and information statements and other information
regarding issuers that file electronically.
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You can obtain more information about the SEC's public reference room by
calling the SEC at 1-800-SEC-0330.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus includes and incorporates by reference certain statements
that may be deemed to be "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements may
be included, for example, under "Wal-Mart Stores, Inc." and "Use of Proceeds,"
and in certain portions of our reports and other information incorporated in
this prospectus by reference. These forward-looking statements may include
statements that address activities, events or developments that we expect or
anticipate will or may occur in the future, including:
. future capital expenditures, including the amount and nature of those
expenditures;
. future expansion and other development trends of industry segments in
which we and our subsidiaries are active;
. our business strategy;
. our financing strategy;
. future expansion and growth of our business; and
. future operations and other similar matters.
Although we believe the expectations expressed in the forward-looking statements
are based on reasonable assumptions within the bounds of our knowledge of our
business, a number of factors could cause actual results to differ materially
from those expressed in any forward-looking statements, whether oral or written,
made by us or on our behalf. Many of these factors have previously been
identified in filings or statements made by us or on our behalf.
Our business operations are subject to factors outside our control. Any
one, or a combination, of these factors could materially affect our financial
performance. These factors include:
. the costs of goods;
. the cost of electricity and other energy requirements;
. competitive pressures;
. inflation;
. consumer debt levels;
. currency exchange fluctuations;
. trade restrictions;
. changes in tariff and freight rates;
. unemployment levels;
. interest rate fluctuations; and
. other capital market and economic conditions.
Forward-looking statements that we make or that are made by others on our
behalf are based on a knowledge of our business and the environment in which we
operate, but because of the factors listed above, actual results may differ from
those in the forward-looking statements. Consequently, all of the
forward-looking statements made are qualified by these cautionary statements. We
cannot assure you that the actual results or developments anticipated by us will
be realized or, even if substantially realized, that they will have the expected
consequences to or effects
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on us or on our business or operations. Prospective investors are cautioned not
to place undue reliance on these forward-looking statements, which speak only as
of their dates. We assume no obligation to update any of the forward-looking
statements.
WAL-MART STORES, INC.
We are the world's largest retailer as measured by total net sales for
fiscal 2001. Our total net sales exceeded $191 billion in fiscal 2001, over 83%
of which was generated in the United States. We operate mass merchandising
stores that serve our customers primarily through the operation of three
segments:
. Wal-Mart stores, which include our discount stores, Supercenters and
Neighborhood Markets in the United States;
. SAM'S Clubs, which include our warehouse membership clubs in the
United States; and
. the international segment of our business.
We currently operate in all 50 states of the United States, Argentina,
Brazil, Canada, Germany, Korea, Mexico, Puerto Rico, and the United Kingdom, and
in China under joint venture agreements. In addition, through our subsidiary,
McLane Company, Inc., we provide products and distribution services to retail
industry and institutional food service customers. As of April 30, 2001, we
operated in the United States:
. 1,702 Wal-Mart stores;
. 952 Supercenters;
. 20 Neighborhood Markets; and
. 479 SAM'S Clubs.
As of April 30, 2001, we also operated 176 Canadian Wal-Mart stores, 11
units in Argentina, 20 units in Brazil, 11 units in China, 94 units in Germany,
six units in Korea, 509 units in Mexico, 17 units in Puerto Rico and 244 units
in the United Kingdom. The units operated by our International Division
represent a variety of retail formats. As of April 30, 2001, we employed more
than 962,000 associates in the United States and 282,000 associates
internationally.
Wal-Mart Stores, Inc. is the parent company of a group of subsidiary
companies, including McLane Company, Inc., Wal-Mart.com, Inc., Wal-Mart de
Mexico, S.A. de C.V., Asda Group Limited, Sam's West, Inc., Sam's East, Inc.,
Wal-Mart Stores East, Inc., Sam's Property Co., Wal-Mart Property Co., Wal-Mart
Real Estate Business Trust, Sam's Real Estate Business Trust and Wares Delaware
Corporation. The information presented above relates to our operations and our
subsidiaries on a consolidated basis.
Wal-Mart Stores, Inc. was incorporated in the State of Delaware on
October 31, 1969.
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the ratio of our earnings to fixed charges,
for the periods indicated:
For the purpose of computing our ratios of earnings to fixed charges, we
have defined "earnings" to mean our earnings before income taxes and fixed
charges, excluding capitalized interest and earnings attributable to minority
interests owned by others in our subsidiaries.
We have also defined "fixed charges" to mean:
. the interest that we pay; plus
. the capitalized interest that we show on our accounting records; plus
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. the portion of the rental expense for real and personal property that
we believe represents the interest factor in those rentals.
We have not disclosed ratios of earnings to fixed charges and preferred
stock dividends because we do not have any shares of preferred stock
outstanding.
USE OF PROCEEDS
Except as we otherwise specifically describe in an applicable prospectus
supplement, we will use the net proceeds from the sale of the debt securities:
. to repay the short-term borrowings that we have incurred for corporate
purposes, including to finance capital expenditures such as the
purchase of land and construction of stores and other facilities;
. to repay short-term borrowings that we have incurred to acquire other
companies and assets; and
. to meet our other general working capital requirements.
Before we apply the net proceeds to one or more of these uses, we may invest
those net proceeds in short-term marketable securities.
We may also incur from time to time additional debt other than through the
offering of debt securities under this prospectus.
DESCRIPTION OF THE DEBT SECURITIES
We will issue the debt securities in one or more series under an indenture,
dated as of July 5, 2001, among three of our finance subsidiaries, Wal-Mart
Cayman (Euro) Finance Co., Wal-Mart Cayman (Canadian) Finance Co., and Wal-Mart
Cayman (Sterling) Finance Co., (collectively, the "finance subsidiaries"), Bank
One Trust Company, NA, as the indenture trustee, and us.
The indenture is a contract between Wal-Mart Cayman (Euro) Finance Co.,
Wal-Mart Cayman (Canadian) Finance Co., and Wal-Mart Cayman (Sterling) Finance
Co., the trustee and us. The trustee has two main roles. First, the trustee can
enforce your rights against us if an "event of default," as that term is
described below, occurs under the indenture in relation to debt securities we
have issued. Second, the trustee performs certain administrative duties for us.
We have summarized below material provisions of the debt securities that we
will offer and sell pursuant to this prospectus and material provisions of the
indenture. However, you should understand that this is only a summary. We have
not described all of the provisions of the indenture. We have filed the
indenture with the SEC, and we suggest that you read the indenture. We are
incorporating by reference the provisions of the indenture referred to in the
following summary, whether by reference to articles, sections or defined terms.
The following summary is qualified in its entirety by those provisions of the
indenture.
We will describe the particular terms and conditions of any series of debt
securities offered in the applicable prospectus supplement. The prospectus
supplement, which we will file with the SEC, may or may not modify the general
terms found in this prospectus. For a complete description of any series of debt
securities, you should read both this prospectus and the prospectus supplement
relating to that series of debt securities.
General
As a holder of debt securities issued under the indenture, you will be one
of our unsecured creditors and will have a right to payment equal to that of our
other unsecured creditors.
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The debt securities offered by this prospectus, when aggregated with the
debt securities offered by the finance subsidiaries through the separate
prospectus filed under the registration statement of which this prospectus is a
part, will be limited to a total of $6,000,000,000, or the equivalent amount in
any non-U.S. currency. The indenture, however, does not limit the amount of debt
securities that may be issued under it and provides that debt securities may be
issued under it from time to time in one or more series.
With respect to each particular series of debt securities that we offer by
this prospectus, the prospectus supplement will describe the following terms of
each series of debt securities:
. the title of the series;
. the maximum aggregate principal amount, if any, established for
debt securities of the series;
. the maximum aggregate initial public offering price, if any,
established for the debt securities of the series;
. the date or dates on which the principal will be paid;
. the conditions pursuant to which and the times at which any
premium on the debt securities of the series will be paid;
. the annual rate or rates, if any, at which the debt securities of
the series shall bear interest, or the method or methods by which
the rate or rates, if any, at which the debt securities of the
series shall bear interest may be determined;
. the date or dates from which interest, if any, shall accrue;
. the dates on which any accrued interest shall be payable and the
record dates for the interest payment dates;
. the percentage of the principal amount at which the debt
securities of the series will be issued, and if less than face
amount, the portion of the principal amount that will be payable
upon acceleration of those debt securities' maturity or at the
time of any prepayment of those debt securities or the method for
determining that amount;
. whether we may prepay the debt securities of the series in whole
or part and, if so, the time or times at which any such
prepayment may be made, whether the prepayment may be made in
whole or may be made in part from time to time and the terms and
conditions on which such prepayment may be made, including the
obligation to pay any premium or any other make-whole amount in
connection with any prepayment;
. the office or offices or agency where the debt securities of the
series may be presented for registration of transfer or exchange;
. the place or places where the principal of, premium, if any, and
interest, if any, on debt securities of the series will be paid;
. whether we will have the right to redeem or repurchase the debt
securities of the series, in whole or in part, at our option,
when those redemptions or repurchases may be made, the redemption
or repurchase price or the method or methods for determining the
redemption or repurchase price, and any other terms and
conditions relating to any such redemption or repurchase by us;
. whether, when, on what terms and at whose option we will be
obligated to redeem or repurchase the debt securities of the
series in whole or part at any time pursuant to any sinking fund
or analogous provisions or without the benefit of any sinking
fund or analogous provisions, and any redemption or repurchase
price or the method for determining any redemption or
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repurchase price;
. whether the debt securities of the series will be convertible
into any other of our securities and, if so, when the conversion
of exchange right may be exercised, the conversion or exchange
price or the ratio or ratios or the method of determining the
conversion or exchange price or ratio and any other terms and
conditions, including anti-dilution terms, upon which any
conversion or exchange may occur;
. if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which we will issue debt securities
of the series;
. the currency in which we will pay principal, any premium,
interest or other amounts owing with respect to the debt
securities of the series, which may be United States dollars, a
foreign currency or a composite currency;
. any index, formula or other method that we must use to determine
the amount of any payment of principal, any premium or interest
on the debt securities of the series;
. whether, and under what conditions, we will be required to pay
any additional amounts;
. whether the debt securities of the series will be issued in
certificated or book-entry form;
. any addition to or change in the events of default with respect
to, or covenants relating to, the debt securities in the series;
. whether the debt securities of the series will be subject to
defeasance as provided in the indenture; and
. any other specific terms and conditions of the series of debt
securities.
If we sell any series of debt securities for, that we may pay in, or that
are denominated in, one or more foreign currencies, currency units or composite
currencies, we will disclose any material applicable restrictions, elections,
tax consequences, specific terms and other information with respect to that
series of debt securities and the relevant currencies, currency units or
composite currencies in the prospectus supplement relating to the offer of that
series.
We may also offer and sell a series of the debt securities as original
issue discount securities, bearing no interest or interest at a rate that at the
time of issuance is below market rates, or at a substantial discount below their
stated principal amount. We will describe the income tax consequences and other
special considerations applicable to any original issue discount securities of
that kind described in the prospectus supplement relating to that series.
Events of Default and Waiver
An event of default with respect to debt securities of a series issued
will occur if:
. we fail to pay interest on any outstanding debt securities when
it is due and payable and that failure continues for 30 days;
. we fail to pay principal on any outstanding debt securities when
it is due and payable;
. we fail to perform or we breach any covenant or warranty in the
indenture with respect to any debt securities outstanding or we
fail to perform or breach any covenant or warranty particular to
a series of debt securities and that failure continues for 90
days after we receive written notice of that default; and
. certain events of bankruptcy, insolvency or reorganization occur
with respect to us.
If an event of default with respect to any series of outstanding debt
securities occurs and is continuing, the trustee or the holders of not less than
25% in aggregate principal amount of that series of outstanding debt securities
may declare the principal amount of the outstanding debt securities of that
series to be immediately due and payable. The holders of a majority in aggregate
principal amount of the outstanding debt securities of a series may waive an
event of default resulting in acceleration of the debt securities of that
series, but only if all other events of default with respect to the debt
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securities of that series have been remedied or waived and all payments due with
respect to the debt securities of that series, other than those due as a result
of acceleration, have been made. If an event of default occurs and is continuing
with respect to the debt securities of a series, the trustee may, in its
discretion, and at the written request of holders of not less than a majority in
aggregate principal amount of the outstanding debt securities of that series and
upon reasonable indemnity against the costs, expenses and liabilities to be
incurred in compliance with such request and subject to certain other conditions
set forth in the indenture shall, proceed to protect the rights of the holders
of the debt securities of that series. Prior to any acceleration of the maturity
of the debt securities of a series, the holders of a majority in aggregate
principal amount of the debt securities of that series may waive any past
default under the indenture except a default in the payment of principal of, or
interest on, those debt securities.
The indenture provides that upon the occurrence of an event of default
described in the first two bullet points in the first paragraph under "Events of
Default and Waiver" with respect to a series of debt securities, we will, upon
the trustee's demand, pay to the trustee for the benefit of the holders of the
outstanding debt securities of that series, the whole amount then due and
payable on the debt securities of that series for principal and interest. The
indenture also provides that if we fail to pay such amount forthwith upon such
demand, the trustee may, among other things, institute a judicial proceeding for
the collection of those amounts.
The indenture provides that, notwithstanding any other provision of
the indenture, the holder of any debt securities of a series shall have the
right to institute suit for the enforcement of any payment of principal of, and
interest on, the debt securities of that series when due and that such right
shall not be impaired without the consent of that holder.
The trustee is required, within 90 days after the occurrence of a
default with respect to the debt securities of a series, to give to the holders
of the debt securities of that series notice of all uncured defaults known to
it. However, except in the case of default in the payment of principal or
interest on any of the debt securities of that series, the trustee will be
protected in withholding that notice if the trustee in good faith determines
that the withholding of that notice is in the interest of the holders of the
debt securities of that series. The term "default," for the purpose of this
provision only, means the occurrence of any of the events of default specified
above excluding any grace periods.
We are required to file annually with the applicable trustee a written
statement as to the existence or non-existence of defaults under the indenture
or any series of debt securities.
Legal Defeasance and Covenant Defeasance
We and the finance subsidiaries that are parties to the indenture
may, at our collective option and at any time, elect to have all of the
obligations discharged with respect to the outstanding debt securities and any
guarantee of those debt securities, except for:
. the rights of holders of debt securities to receive payments of
principal and interest from the trust referred to below when those
payments are due;
. our obligations respecting the debt securities concerning issuing
temporary notes, registration of transfers of debt securities,
mutilated, destroyed, lost or stolen debt securities, the maintenance
of an office or agency for payment and money for debt security
payments being held in trust;
. the rights, powers, trusts, duties and immunities of the trustee and
our obligations in connection therewith; and
. the provisions of the indenture relating to such a discharge of
obligations.
We refer to such a discharge as "defeasance."
In addition, other than our covenant to pay the amounts due and owing
with respect to a series of debt securities, we may elect to have our
obligations as the issuer of a series of debt securities released with respect
to covenants relating to that series of debt securities. Thereafter, any failure
to comply with those obligations will not constitute a default or event of
default with respect to the debt securities of that series. If such a release of
our covenants occurs, our failure to perform or our breach of the covenants or
warranties defeased will no longer constitute an event of default with respect
to those debt securities.
To exercise the right to either of the rights we describe above,
certain conditions must be met, including:
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. the issuer of the affected debt securities must irrevocably deposit
with the trustee, in trust for the debt security holders' benefit,
cash in U.S. dollars, certain United States government securities, or
a combination thereof, in amounts sufficient to pay the principal of
and interest on all of the then outstanding debt securities to be
affected by the defeasance at their stated maturity;
. the trustee must receive an opinion of counsel confirming that the
holders of the outstanding debt securities will not recognize income,
gain or loss for federal income tax purposes as a result of that
defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been
the case if that defeasance had not occurred, which opinion, in the
case of the type of defeasance first described above only, will be
based on a ruling of the Internal Revenue Service or a change in
federal income tax law to that effect occurring after the date of the
indenture;
. no default or event of default exists on the date of such deposit,
subject to certain exceptions; and
. the trustee must receive an opinion of counsel to the effect that,
after the 91st day following the deposit, the trust funds will not be
part of any "estate" formed by the bankruptcy or reorganization of the
party depositing those funds with the trustee or subject to the
"automatic stay" under the United States Bankruptcy Code or, in the
case of covenant defeasance, will be subject to a first priority lien
in favor of the trustee for the benefit of the holders.
Satisfaction and Discharge
If we and our finance subsidiaries that are also parties to the
indenture so request, the indenture will cease to be of further effect, other
than as to certain rights of registration of transfer or exchange of the notes,
as provided for in the indenture, and the trustee, at our expense, will execute
proper instruments acknowledging satisfaction and discharge of the indenture,
the debt securities and any guarantees then outstanding when:
. either all the debt securities previously authenticated and delivered
under the indenture, other than destroyed, lost or stolen securities
that have been replaced or paid and notes that have been subject to
defeasance, have been delivered to the trustee for cancellation; or
. all of the securities issued under the indenture not previously
delivered to the trustee for cancellation have become due and payable,
will become due and payable at their stated maturity within 60 days or
will become due and payable at redemption within 60 days under
arrangements satisfactory to the trustee for the giving of notice of
redemption by the trustee in our name and expense; and
. in each of the foregoing cases, each issuer of the affected debt
securities has irrevocably deposited or caused to be deposited with
the trustee cash in U.S. dollars, certain United States government
securities, or a combination thereof, in trust for the purpose and in
an amount sufficient to pay and discharge the entire indebtedness
arising under the debt securities issued pursuant to the indenture not
previously delivered to the trustee for cancellation, for principal,
and premium, if any, on and interest on these securities to the date
of such deposit (in the case of notes that have become due and
payable) or to the stated maturity of these securities or redemption
date, as the case may be;
. we and the finance subsidiaries have paid or caused to be paid all
sums payable under the indenture by us; and
. we and the finance subsidiaries have delivered to the trustee an
officers' certificate and an opinion of counsel, each stating that all
conditions precedent provided in the indenture relating to the
satisfaction and discharge of the indenture, the securities issued
under the indenture have been complied with.
Modification of the Indenture
The indenture provides that, with the consent of the holders of not
less than a majority in aggregate principal amount of the outstanding debt
securities of each affected series, modifications and alterations of such
indenture may be made which affect the rights of the holders of such debt
securities. However, no such modification or alteration may be made without the
consent of the holder of each debt security if the modification or alteration
would, among other things:
. change the maturity of the principal of, or of any installment of
interest on, any debt security, or reduce the principal amount of any
debt security, or change the method of calculation of interest or the
currency of payment of principal or interest on, or reduce the minimum
rate of interest thereon, or impair the right to institute suit for
the enforcement of any such payment on or with respect to any such
debt security; or
9
. reduce the above-stated percentage in principal amount of outstanding
debt securities required to modify or alter such indenture.
The trustee and we, without the consent of the holders of the debt
securities, may execute an indenture or supplemental indentures to:
. evidence the succession of another corporation to us and the
successor's assumption to our respective agreements and obligations
with respect to the debt securities and the indenture;
. add to our covenants further restrictions or conditions that our board
of directors and the trustee consider to be for the protection of
holders of all or any series of the debt securities and to make the
occurrence of a default in any of those additional covenants,
restrictions or conditions a default or an event of default under the
indenture subject to certain limitations;
. cure ambiguities or correct or supplement any provision contained in
the indenture or any supplemental indenture that may be defective or
inconsistent with another provision;
. provide for the issuance of debt securities whether or not then
outstanding under the indenture in coupon form and to provide for
exchangeability of the coupon form securities with other debt
securities issued under the indenture in fully registered form;
. establish new series of debt securities and the form or terms of such
series of debt securities and to provide for the issuance of
securities of any series so established; and
. evidence and provide for the acceptance of appointment of a successor
trustee and to change the indenture as necessary to have more than one
trustee under the indenture.
Amalgamation, Consolidation, Merger or Sale of Assets
The indenture provides that we may, without the consent of the holders
of any of the outstanding debt securities of any series, amalgamate, consolidate
with, merge into or transfer our assets substantially as an entirety to any
person, provided that:
. any successor to us assumes our obligations on the debt securities
and under the indenture;
. any successor to us must be an entity incorporated or organized under
the laws of the United States;
. after giving effect thereto, no event of default, as defined in the
indenture, shall have occurred and be continuing; and
. certain other conditions under the indenture are met. Any such
amalgamation, consolidation, merger or transfer of assets
substantially as an entirety that meets the conditions described above
would not create any default or event of default that would entitle
holders of the debt securities or the trustee, on their behalf, to
take any of the actions described above under "Events of Default and
Waiver."
Debt and Lien Incurrence
The indenture and the debt securities do not contain any provision
that would limit our right to incur other indebtedness, enter into any sale and
leaseback transaction or grant liens on our assets.
The Indenture Trustee
Bank One Trust Company, NA is the trustee under the indenture
governing the debt securities and will also be the registrar and paying agent.
The trustee is a national banking association with its principal offices in
Chicago, Illinois.
The trustee has two main roles under the indenture. First, the trustee
can enforce your rights against us if any of the actions described above under
"Events of Default and Waiver," occurs. Second, the trustee performs certain
administrative duties for us. The trustee is entitled, subject to the duty of
the trustee during a default to act with the required standard of care, to be
indemnified by the holders of the debt securities before proceeding to exercise
any right or power under the indenture at the request of those holders. The
indenture provides that the holders of a majority in principal amount of the
debt securities may direct, with regard to that series, the time, method and
place of conducting any proceeding for any remedy available to the trustee, or
exercising any trust or
10
power conferred on the trustee, with respect to the debt securities, although
the trustee may decline to act if that direction is contrary to law or if the
trustee determines in good faith that the proceeding so directed would be
illegal or would result in personal liability to it.
Bank One Trust Company, NA also serves as trustee under an indenture,
dated as of April 1, 1991, between it and us. As of May 31, 2001, we had
issued a total of $17.46 billion of our senior unsecured securities under that
indenture as supplemented through the date of this offering memorandum. Bank One
Trust Company, NA also serves as trustee under an indenture, dated as of
December 1, 1986, covering secured bonds issued in the aggregate principal
amount of $137,082,000 by the owner trustees of approximately 24 SAM'S Clubs
store properties that are leased to one of our subsidiaries. Bank One Leasing
Corporation, an affiliate of Bank One Trust Company, NA established a business
trust that purchased 15 Wal-Mart discount stores for $53,661,785 and leased the
stores back to us for an initial term of 20 years in a transaction consummated
on December 22, 1992. On November 10, 1994, a second business trust of which
Bank One Leasing Corporation is a beneficiary purchased an additional 23
Wal-Mart discount stores for $128,842,500 and leased the stores back to us for
an initial term of 20 years. Bank One Trust Company, NA also serves as trustee
under an indenture, dated as of April 27, 2001 between Wal-Mart Canada Venture
Corp., one of our subsidiaries, us, as guarantor, and Bank One Trust Company,
NA, as the indenture trustee. On April 27, 2001, Wal-Mart Canada Venture Corp.
issued a total of $325,000,000 of its senior unsecured debt securities under
that indenture that are guaranteed by us.
We expect to maintain banking relationships in the ordinary course of
business with Bank One, NA, an affiliate of Bank One Trust Company, NA.
TAX CONSEQUENCES TO HOLDERS
A prospectus supplement may describe the principal U.S. federal income tax
consequences of acquiring, owning and disposing of debt securities of some
series in the following circumstances:
. payment of the principal, interest and any premium in a currency other
than the U. S. dollar;
. the issuance of any debt securities with "original issue discount," as
defined for U. S. federal income tax purposes;
. the issuance of any debt securities with an associated "bond premium,"
as defined for U.S. federal income tax purposes; and
. the inclusion of any special terms in debt securities that may have a
material effect for U.S. federal income tax purposes.
In addition, if the tax laws of foreign countries are material to a particular
series of debt securities, a prospectus supplement may describe the principal
income tax consequences of acquiring, owning and disposing of debt securities of
some series under similar circumstances.
PLAN OF DISTRIBUTION
General
We may sell the debt securities being offered hereby:
. directly to purchasers;
. through agents;
. through dealers;
. through underwriters; or
11
. through a combination of any of those methods of sale.
We may effect the distribution of the debt securities from time to time in
one or more transactions either:
. at a fixed price or prices which may be changed;
. at market prices prevailing at the time of sale; or
. at prices related to the prevailing market prices; or
. at negotiated prices.
We may directly solicit offers to purchase the debt securities. Offers to
purchase debt securities may also be solicited by agents designated by us from
time to time. Any of those agents, who may be deemed to be an "underwriter," as
that term is defined in the Securities Act of 1933, involved in the offer or
sale of the debt securities in respect of which this prospectus is delivered
will be named, and any commissions payable by us to that agent will be set forth
in the prospectus supplement.
If a dealer is utilized in the sale of the debt securities in respect of
which this prospectus is delivered, we will sell those debt securities to the
dealer, as principal. The dealer, who may be deemed to be an "underwriter," as
that term is defined in the Securities Act of 1933, may then resell those debt
securities to the public at varying prices to be determined by that dealer at
the time of resale.
If we use an underwriter or underwriters in the sales, we will execute an
underwriting agreement with those underwriters at the time of sale of the debt
securities and the name of the underwriters will be set forth in the prospectus
supplement, which will be used by the underwriters to make resales of the debt
securities in respect of which this prospectus is delivered to the public. The
compensation of any underwriters will also be set forth in the prospectus
supplement.
Underwriters, dealers, agents and other persons may be entitled, under
agreements that may be entered into with us, to indemnification by us against
certain civil liabilities, including liabilities under the Securities Act of
1933, or to our contributing to payments those underwriters, dealers, agents and
other persons are required to make.
Underwriters, dealers and agents may engage in transactions with, or
perform services for, us or any of our subsidiaries in the ordinary course of
business.
LEGAL MATTERS
The validity of the debt securities offered by this prospectus and any
prospectus supplement will be passed upon for us by Hughes & Luce, L.L.P., our
counsel.
EXPERTS
The consolidated financial statements of Wal-Mart Stores, Inc. and its
subsidiaries incorporated by reference in Wal-Mart Stores, Inc.'s Annual Report
on Form 10-K, as amended, for the fiscal year ended January 31, 2001, have been
audited by Ernst & Young LLP, independent auditors, as set forth in their report
thereon incorporated by reference therein and incorporated herein by reference.
Such financial statements are, and audited financial statements to be included
in subsequently filed documents will be, incorporated herein in reliance upon
the reports of Ernst & Young LLP pertaining to such financial statements, to the
extent covered by consents filed with the Securities and Exchange Commission,
given on the authority of such firm as experts in accounting and auditing.
12
********************************************************************************
*The information in this prospectus in not complete and may be changed. This *
*prospectus is not an offer to sell these securities or our solicitation of *
*your offer to buy these securities, nor will we sell them or accept your *
*offer to buy them, in any state or other jurisdiction where that would not be *
*permitted or legal prior to registration or qualification in that state or *
*other jurisidiction. We may not sell these securities until the registration *
*statement filed with the Securities and Exchange Commission is effective. *
********************************************************************************
SUBJECT TO COMPLETION, DATED JULY 6, 2001
PROSPECTUS
Wal-Mart Cayman (Euro) Finance Co.
Wal-Mart Cayman (Canadian) Finance Co.
Wal-Mart Cayman (Sterling) Finance Co.
Payment of Principal and Interest Unconditionally Guaranteed by
WAL-MART STORES, INC.
$6,000,000,000
DEBT SECURITIES
Unless otherwise stated or the context otherwise requires, references in
this prospectus to "Wal-Mart" refer to Wal-Mart Stores, Inc., and references to
"we," "our," or "us" refer to one of Wal-Mart Cayman (Euro) Finance Co.,
Wal-Mart Cayman (Canadian) Finance Co. or Wal-Mart (Sterling) Finance Co., which
are wholly-owned subsidiaries of Wal-Mart. When we refer to the "finance
subsidiaries," we are referring to those Wal-Mart subsidiaries as a group and
references to a "finance subsidiary" refer to one of the finance subsidiaries.
This prospectus forms part of a shelf registration statement that Wal-Mart
and the finance subsidiaries filed with the Securities and Exchange Commission.
Any of Wal-Mart and the finance subsidiaries may use the registration statement
to offer and sell its debt securities in one or more offerings at various times,
for up to a total of $6,000,000,000 of debt securities. The offer and sale of
debt securities pursuant to this prospectus or by Wal-Mart pursuant to a
separate prospectus relating to its offer and sale of debt securities that forms
a part of that registration statement reduces the amount of debt securities any
finance subsidiary may offer and sell under that registration statement pursuant
to this prospectus.
We may offer and sell debt securities in different series that have
different terms and conditions. This prospectus provides you with a general
description of certain material terms of those debt securities. When we sell a
particular series of the debt securities, we will provide a prospectus
supplement describing the specific terms and conditions of that series of debt
securities, including:
. the public offering price;
. the maturity date;
. the interest rate or rates, which may be fixed or variable;
. the times for payment of principal, interest and any premium; and
. any redemption provisions of the debt securities in the series.
Wal-Mart, our parent company, will unconditionally guarantee payment of
the principal of, and the accrued and unpaid interest on, the debt securities
that the finance subsidiaries issue as described in this prospectus.
The particular prospectus supplement may also contain important
information about U. S. federal income tax consequences and, in certain
circumstances, consequences under other countries' tax laws to which you may
become subject if you acquire the debt securities being offered by that
prospectus supplement. The prospectus supplement may also update or change
information contained in this prospectus.
THIS PROSPECTUS MAY NOT BE USED TO SELL SECURITIES UNLESS ACCOMPANIED BY A
PROSPECTUS SUPPLEMENT.
You should read carefully both this prospectus and any prospectus
supplement together with the additional information described under the heading
"Where You Can Find More Information" before making your investment decision.
We maintain our principal executive offices at:
702 S.W. 8/th/ Street, Mail Stop 0290
Bentonville, Arkansas 72716
Telephone: (501) 273-4000.
Neither the Securities and Exchange Commission nor any state securities
commission or other regulatory body has approved or disapproved of these
securities or determined if this prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.
The date of this Prospectus is July __,2001.
TABLE OF CONTENTS
You should rely only on the information contained or incorporated by
reference in this prospectus and in any accompanying prospectus supplement. We
have not authorized anyone to provide you with different information.
We are not offering the debt securities in any jurisdiction in which the
offer is not permitted.
WHERE YOU CAN FIND MORE INFORMATION
Wal-Mart files annual, quarterly and special reports, proxy statements and
other information with the SEC. Instead of repeating the information that
Wal-Mart has already filed with the SEC, the SEC allows us to "incorporate by
reference" in this prospectus information contained in documents that Wal-Mart
has filed with the SEC. Those documents form an important part of this
prospectus. Any documents that Wal-Mart files with the SEC in the future will
also be considered to be part of this prospectus and will automatically update
and supersede the information contained in this prospectus.
We incorporate by reference in this prospectus the documents listed below
and any future filings Wal-Mart makes with the SEC under Sections 13(a), 13(c),
14 or 15(d) of the Securities Exchange Act of 1934 until we complete or
terminate the offering of debt securities by this prospectus.
. Wal-Mart's Annual Report on Form 10-K for its fiscal year ended January
31, 2001, as amended.
. Wal-Mart's Quarterly Report on Form 10-Q for its fiscal quarter ended
April 30, 2001; and
. Wal-Mart's Current Report on Form 8-K dated May 9, 2001.
As allowed by the SEC's rules, we have not included in this prospectus all
of the information that is included in the registration statement. At your
request, Wal-Mart will provide you, free of charge, with a copy of the
registration statement, any of the exhibits to the registration statement or a
copy of any other information we incorporated by reference in the registration
statement. If you want more information, write in care of or call:
Allison D. Garrett, Esq.
Vice President and Assistant General Counsel
Wal-Mart Stores, Inc.
Corporate Offices
702 S.W. 8/th/ Street, Mail Stop 0290
Bentonville, Arkansas 72716
Telephone: (501) 273-4505
You may also obtain a copy of any filing Wal-Mart has made with the SEC
directly from the SEC. You may either:
2
. read and copy any materials Wal-Mart has filed with the SEC at the
SEC's public reference rooms at 450 Fifth Street, N.W., Washington,
D.C. 20549 and at its offices in New York, New York at 7 World Trade
Center, Suite 1300, New York, New York 10048, and Chicago, Illinois at
Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois
60661-2511; or
. visit the SEC's Internet site at http://www.sec.gov, which contains
reports, proxy and information statements and other information
regarding issuers that file electronically.
You can obtain more information about the SEC's public reference room by
calling the SEC at 1-800-SEC-0330.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus includes and incorporates by reference certain statements
that may be deemed to be "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements may
be included, for example, under "Wal-Mart Stores, Inc." and "Use of Proceeds,"
and in certain portions of Wal-Mart's reports and other information incorporated
in this prospectus by reference. These forward-looking statements may include
statements that address activities, events or developments that Wal-Mart expects
or anticipates will or may occur in the future, including:
. future capital expenditures, including the amount and nature of those
expenditures;
. future expansion and other development trends of industry segments in
which Wal-Mart and its subsidiaries are active;
. Wal-Mart's business strategy;
. Wal-Mart's financing strategy;
. future expansion and growth of Wal-Mart's business; and
. future operations and other similar matters.
Although we and Wal-Mart believe the expectations expressed in the
forward-looking statements are based on reasonable assumptions within the bounds
of Wal-Mart's knowledge of its business, a number of factors could cause actual
results to differ materially from those expressed in any forward-looking
statements, whether oral or written, made by us or Wal-Mart or on our or its
behalf. Many of these factors have previously been identified in filings or
statements made by Wal-Mart or on its behalf.
Wal-Mart's business operations are subject to factors outside its control.
Any one, or a combination, of these factors could materially affect Wal-Mart's
financial performance. These factors include:
. the costs of goods;
. the cost of electricity and other energy requirements;
. competitive pressures;
. inflation;
. consumer debt levels;
. currency exchange fluctuations;
. trade restrictions;
. changes in tariff and freight rates;
. unemployment levels;
. interest rate fluctuations; and
. other capital market and economic conditions.
3
Forward-looking statements that we or Wal-Mart make or that are made by
others on our or Wal-Mart's behalf are based on a knowledge of Wal-Mart's
business and the environment in which it operates, but because of the factors
listed above, actual results may differ from those in the forward-looking
statements. Consequently, all of the forward-looking statements made are
qualified by these cautionary statements. Neither Wal-Mart nor we can assure you
that the actual results or developments anticipated by Wal-Mart will be realized
or, even if substantially realized, that they will have the expected
consequences to or effects on Wal-Mart or on its business or operations.
Prospective investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. Neither Wal-Mart
nor we assume any obligation to update any of the forward-looking statements.
WAL-MART STORES, INC.
Wal-Mart is the world's largest retailer as measured by total net sales
for fiscal 2001. Its total net sales exceeded $191 billion in fiscal 2001, over
83% of which was generated in the United States. Wal-Mart operates mass
merchandising stores that serve its customers primarily through the operation of
three segments:
. Wal-Mart stores, which include its discount stores, Supercenters and
Neighborhood Markets in the United States;
. SAM'S Clubs, which include its warehouse membership clubs in the United
States; and
. the international segment of its business.
Wal-Mart currently operates in all 50 states of the United States,
Argentina, Brazil, Canada, Germany, Korea, Mexico, Puerto Rico, and the United
Kingdom, and in China under joint venture agreements. In addition, through its
subsidiary, McLane Company, Inc., Wal-Mart provides products and distribution
services to retail industry and institutional food service customers. As of
April 30, 2001, Wal-Mart operated in the United States:
. 1,702 Wal-Mart stores;
. 952 Supercenters;
. 20 Neighborhood Markets; and
. 479 SAM'S Clubs.
As of April 30, 2001, Wal-Mart also operated 176 Canadian Wal-Mart
stores, 11 units in Argentina, 20 units in Brazil, 11 units in China, 94 units
in Germany, six units in Korea, 509 units in Mexico, 17 units in Puerto Rico and
244 units in the United Kingdom. The units operated by Wal-Mart's International
Division represent a variety of retail formats. As of April 30, 2001, Wal-Mart
employed more than 962,000 associates in the United States and 282,000
associates internationally.
Wal-Mart Stores, Inc. is the parent company of a group of subsidiary
companies, including McLane Company, Inc., Wal-Mart.com, Inc., Wal-Mart de
Mexico, S.A. de C.V., Asda Group Limited, Sam's West, Inc., Sam's East, Inc.,
Wal-Mart Stores East, Inc., Sam's Property Co., Wal-Mart Property Co., Wal-Mart
Real Estate Business Trust, Sam's Real Estate Business Trust, Wares Delaware
Corporation and the finance subsidiaries. The information presented above
relates to our operations and our subsidiaries on a consolidated basis.
Wal-Mart Stores, Inc. was incorporated in the State of Delaware on
October 31, 1969.
THE FINANCE SUBSIDIARIES
Wal-Mart formed each of the finance subsidiaries, all of which are
wholly-owned direct subsidiaries, for the purpose of providing financing to
foreign operating subsidiaries of Wal-Mart. Providing that financing will be
each finance subsidiary's principal business activity. The finance subsidiaries
do not, and will not, file periodic reports with the SEC.
None of the finance subsidiaries has had any operations or revenues as
of the date of this prospectus. The finance subsidiaries expect that the
repayment of loans or the distributions made with respect to other investments
in operating subsidiaries of Wal-Mart will be their sole source of revenue.
4
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the ratio of earnings to fixed charges for
Wal-Mart, for the periods indicated:
For the purpose of computing Wal-Mart's ratios of earnings to fixed
charges, we have defined "earnings" to mean Wal-Mart's earnings before income
taxes and fixed charges, excluding capitalized interest and earnings
attributable to minority interests owned by others in Wal-Mart's subsidiaries.
. We have also defined "fixed charges" to mean:
. the interest that Wal-Mart pays; plus
. the capitalized interest that Wal-Mart shows on its accounting records;
plus
. the portion of the rental expense for real and personal property that
Wal-Mart believes represents the interest factor in those rentals.
We have not disclosed Wal-Mart's ratios of earnings to fixed charges and
preferred stock dividends because Wal-Mart does not have any shares of preferred
stock outstanding.
USE OF PROCEEDS
Except as we otherwise specifically describe in an applicable prospectus
supplement, we will use the net proceeds from the sale of the debt securities to
finance the operations and expansion activities of foreign operating
subsidiaries of Wal-Mart. Before we apply the net proceeds to one or more of
these uses, we may invest those net proceeds in short-term marketable
securities.
We may also incur from time to time additional debt other than through the
offering of debt securities under this prospectus.
DESCRIPTION OF THE DEBT SECURITIES
We will issue the debt securities in one or more series under an indenture,
dated as of July 5, 2001, among Wal-Mart Stores, Inc., the finance subsidiaries
and Bank One Trust Company, NA, as the indenture trustee.
The indenture is a contract between Wal-Mart, the trustee and each of the
finance subsidiaries. The trustee has two main roles. First, the trustee can
enforce your rights against us if an "event of default," as that term is
described below, occurs under the indenture in relation to debt securities we
have issued and against Wal-Mart pursuant to the guarantee if it fails to
perform its obligations under the guarantees of the debt securities. Second, the
trustee performs certain administrative duties for Wal-Mart and us.
We have summarized below material provisions of the debt securities that we
will offer and sell pursuant to this prospectus and material provisions of the
indenture. However, you should understand that this is only a summary, and we
have not described all of the provisions of the indenture. Wal-Mart and we have
filed the indenture with the SEC, and we suggest that you read the indenture. We
are incorporating by reference the provisions of the indenture referred to in
the following summary, whether by reference to articles, sections or defined
terms. The summary is qualified in its entirety by those provisions of the
indenture.
We will describe the particular terms and conditions of any series of debt
securities offered in the applicable prospectus supplement. The prospectus
supplement, which we will file with the SEC, may or may not modify the general
terms found in this prospectus. For a complete description of any series of debt
securities, you should read both this prospectus and the prospectus supplement
relating to that series of debt securities.
5
General
As a holder of debt securities issued under the indenture, you will be
one of our unsecured creditors and will have a right to payment equal to that of
our other unsecured creditors.
The debt securities offered by this prospectus, when aggregated with the
debt securities offered by Wal-Mart through the separate prospectus filed under
the registration statement of which this prospectus is a part, will be limited
to a total of $6,000,000,000, or the equivalent amount in any non-U.S. currency.
The indenture, however, does not limit the amount of debt securities that may be
issued under it and provides that debt securities may be issued under it from
time to time in one or more series.
With respect to each particular series of debt securities offered by this
prospectus, a prospectus supplement will describe the following terms of that
series of debt securities:
. the title of the series;
. the maximum aggregate principal amount, if any, established for
debt securities of the series;
. the maximum aggregate initial public offering price, if any,
established for the debt securities of the series;
. the date or dates on which the principal will be paid;
. the conditions pursuant to which, and the times at which, any
premium on the debt securities of the series will be paid;
. the annual rate or rates, if any, at which the debt securities of
the series shall bear interest, or the method or methods by which
the rate or rates, if any, at which the debt securities of the
series shall bear interest may be determined;
. the date or dates from which interest, if any, shall accrue;
. the dates on which any accrued interest shall be payable and the
record dates for the interest payment dates;
. the percentage of the principal amount at which the debt
securities of the series will be issued, and if less than face
amount, the portion of the principal amount that will be payable
upon acceleration of those debt securities' maturity or at the
time of any prepayment of those debt securities or the method for
determining that amount;
. whether we may prepay the debt securities of the series in whole
or part and, if so, the time or times at which any such
prepayment may be made, whether the prepayment may be made in
whole or may be made in part from time to time and the terms and
conditions on which such prepayment may be made, including the
obligation to pay any premium or any other make-whole amount in
connection with any prepayment;
. the office or offices or agency where the debt securities of the
series may be presented for registration of transfer or exchange;
. the place or places where the principal of, premium, if any, and
interest, if any, on debt securities of the series will be paid;
. whether we will have the right to redeem or repurchase the debt
securities of the series, in whole or in part, at our option,
when those redemptions or repurchases may be made, the redemption
or repurchase price or the method or methods for determining the
redemption or repurchase price, and any other terms and
conditions relating to any such redemption or repurchase by us;
6
. whether, when, on what terms and at whose option we will be
obligated to redeem or repurchase the debt securities of the
series in whole or part at any time pursuant to any sinking fund
or analogous provisions or without the benefit of any sinking
fund or analogous provisions, and any redemption or repurchase
price or the method for determining any redemption or repurchase
price;
. if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which we will issue debt securities
of the series;
. the currency in which we will pay principal, any premium,
interest or other amounts owing with respect to the debt
securities of the series, which may be United States dollars, a
foreign currency or a composite currency;
. any index, formula or other method that we must use to determine
the amount of any payment of principal, any premium or interest
on the debt securities of the series;
. whether, and under what conditions, we will be required to pay
any additional amounts;
. whether the debt securities of the series will be issued in
certificated or book-entry form;
. any addition to or change in the events of default with respect
to, or covenants relating to, the debt securities in the series;
. whether the debt securities of the series will be subject to
defeasance as provided in the indenture; and
. any other specific terms and conditions of the series of debt
securities.
If we sell any series of debt securities for, that we may pay in, or that
are denominated in, one or more foreign currencies, currency units or composite
currencies, we will disclose any material applicable restrictions, elections,
tax consequences, specific terms and other information with respect to that
series of debt securities and the relevant currencies, currency units or
composite currencies in the prospectus supplement relating to the offer of that
series.
We may also offer and sell a series of the debt securities as original
issue discount securities, bearing no interest or interest at a rate that at the
time of issuance is below market rates, or at a substantial discount below their
stated principal amount. We will describe the tax consequences and other special
considerations applicable to any original issue discount securities of that kind
described in the prospectus supplement relating to that series.
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Events of Default and Waiver
An event of default with respect to debt securities of a series issued
will occur if:
. we fail to pay interest on any outstanding debt securities when it is
due and payable and that failure continues for 30 days;
. we fail to pay principal on any outstanding debt securities when it is
due and payable;
. we fail to perform or we breach any covenant or warranty in the
indenture with respect to any debt securities outstanding or we fail
to perform or breach any covenant or warranty particular to a series
of debt securities and that failure continues for 90 days after we
receive written notice of that default; and
. certain events of bankruptcy, insolvency or reorganization occur with
respect to us.
If an event of default with respect to any series of outstanding debt
securities occurs and is continuing, the trustee or the holders of not less than
25% in aggregate principal amount of that series of outstanding debt securities
may declare the principal amount of the outstanding debt securities of that
series to be immediately due and payable. The holders of a majority in aggregate
principal amount of the outstanding debt securities of a series may waive an
event of default resulting in acceleration of the debt securities of that
series, but only if all other events of default with respect to the debt
securities of that series have been remedied or waived and all payments due with
respect to that series of debt securities, other than those due as a result of
acceleration, have been made. If an event of default occurs and is continuing
with respect to the debt securities of a series, the trustee may, in its
discretion, and at the written request of holders of not less than a majority in
aggregate principal amount of the outstanding debt securities of that series and
upon reasonable indemnity against the costs, expenses and liabilities to be
incurred in compliance with such request and subject to certain other conditions
set forth in the indenture shall, proceed to protect the rights of the holders
of the debt securities of that series. Prior to any acceleration of the maturity
of the debt securities of a series, the holders of a majority in aggregate
principal amount of the debt securities of that series may waive any past
default under the indenture except a default in the payment of principal of, or
interest on, those debt securities.
The indenture provides that upon the occurrence of an event of default
described in the first two bullet points in the first paragraph under "Events of
Default and Waiver" with respect to a series of debt securities, we will, upon
the trustee's demand, pay to the trustee for the benefit of the holders of the
outstanding debt securities of that series, the whole amount then due and
payable on the debt securities of that series for principal and interest. The
indenture also provides that if we fail to pay such amount forthwith upon such
demand, the trustee may, among other things, institute a judicial proceeding for
the collection of those amounts.
The indenture provides that, notwithstanding any other provision of
the indenture, the holder of any debt securities of a series shall have the
right to institute suit for the enforcement of any payment of principal of, and
interest on, the debt securities of that series when due and that such right
shall not be impaired without the consent of that holder.
The trustee is required, within 90 days after the occurrence of a
default with respect to the debt securities of a series, to give to the holders
of the debt securities of that series notice of all uncured defaults known to
it. However, except in the case of default in the payment of principal or
interest on any of the debt securities of that series, the trustee will be
protected in withholding that notice if the trustee in good faith determines
that the withholding of that notice is in the interest of the holders of the
debt securities of that series. The term "default," for the purpose of this
provision only, means the occurrence of any of the events of default specified
above excluding any grace periods.
We are required to file annually with the applicable trustee a written
statement as to the existence or non-existence of defaults under the indenture
or any series of debt securities.
Legal Defeasance and Covenant Defeasance
We, the other finance subsidiaries and Wal-Mart may, at our collective
option and at any time, elect to have all of the obligations discharged with
respect to the outstanding debt securities and any guarantee of those debt
securities, except for:
. the rights of holders of debt securities to receive payments of
principal and interest from the trust referred to below when those
payments are due;
. our obligations respecting the debt securities concerning issuing
temporary notes, registration of transfers of debt securities,
mutilated, destroyed, lost or stolen debt securities, the maintenance
of an office or agency for payment and money for debt security
payments being held in trust;
. the rights, powers, trusts, duties and immunities of the trustee and
our obligations in connection therewith; and
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. the provisions of the indenture relating to such a discharge of
obligations.
We refer to such a discharge as "defeasance."
In addition, other than our covenant to pay the amounts due and
owing with respect to a series of debt securities, we may elect to have our
obligations as the issuer of a series of debt securities released with respect
to covenants relating to that series of debt securities. Thereafter, any failure
to comply with those obligations will not constitute a default or event of
default with respect to the debt securities of that series. If such a release of
our covenants occurs, our failure to perform or our breach of the covenants or
warranties defeased will no longer constitute an event of default with respect
to those debt securities.
To exercise either of the rights we describe above, certain
conditions must be met, including:
. the issuer of the affected debt securities must irrevocably deposit
with the trustee, in trust for the debt security holders' benefit,
cash in U.S. dollars, certain United States government securities, or
a combination thereof, in amounts sufficient to pay the principal of
and interest on all of the then outstanding debt securities to be
affected by the defeasance at their stated maturity;
. the trustee must receive an opinion of counsel confirming that the
holders of the outstanding debt securities will not recognize income,
gain or loss for federal income tax purposes as a result of that
defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been
the case if that defeasance had not occurred, which opinion, in the
case of the type of defeasance first described above only, will be
based on a ruling of the Internal Revenue Service or a change in
federal income tax law to that effect occurring after the date of the
indenture;
. no default or event of default exists on the date of such deposit,
subject to certain exceptions; and
. the trustee must receive an opinion of counsel to the effect that,
after the 91st day following the deposit, the trust funds will not be
part of any "estate" formed by the bankruptcy or reorganization of the
party depositing those funds with the trustee or subject to the
"automatic stay" under the United States Bankruptcy Code or, in the
case of covenant defeasance, will be subject to a first priority lien
in favor of the trustee for the benefit of the holders.
Satisfaction and Discharge
If we, Wal-Mart and the other finance subsidiaries so request, the
indenture will cease to be of further effect, other than as to certain rights of
registration of transfer or exchange of any debt securities, as provided for in
the indenture, and the trustee, at the joint expense of Wal-Mart and the finance
subsidiaries, will execute proper instruments acknowledging satisfaction and
discharge of the indenture, the debt securities and the related guarantees when:
. either all the debt securities previously authenticated and delivered
under the indenture, other than destroyed, lost or stolen securities
that have been replaced or paid and debt securities that have been
subject to defeasance, have been delivered to the trustee for
cancellation; or
. all of the securities issued under the indenture not previously
delivered to the trustee for cancellation have become due and payable,
will become due and payable at their stated maturity within 60 days or
will become due and payable at redemption within 60 days under
arrangements satisfactory to the trustee for the giving of notice of
redemption by the trustee in our name and expense; and
. in each of the foregoing cases, each issuer of the affected debt
securities pursuant to the indenture have irrevocably deposited or
caused to be deposited with the trustee cash in U.S. dollars, certain
United States government securities, or a combination thereof, in
trust for the purpose and in an amount sufficient to pay and discharge
the entire indebtedness arising under the debt securities issued by
them pursuant to the indenture and not previously delivered to the
trustee for cancellation, for principal, and premium, if any, on and
interest on these securities to the date of such deposit (in the case
of notes that have become due and payable) or to the stated maturity
of these securities or redemption date, as the case may be;
. Wal-Mart and those of the finance subsidiaries with any debt
securities outstanding under the indenture have paid or caused to be
paid all sums payable under the indenture by them; and
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. each of Wal-Mart and the finance subsidiaries have delivered to the
trustee an officers' certificate and an opinion of counsel, each
stating that all conditions precedent provided in the indenture
relating to the satisfaction and discharge of the indenture, the
securities issued under the indenture have been complied with.
Modification of the Indenture
The indenture provides that, with the consent of the holders of not
less than a majority in aggregate principal amount of the outstanding debt
securities of each affected series, modifications and alterations of such
indenture may be made which affect the rights of the holders of such debt
securities. However, no such modification or alteration may be made without the
consent of the holder of each debt security if the modification or alteration
would, among other things:
. change the maturity of the principal of, or of any installment of
interest on, any debt security, or reduce the principal amount of any
debt security, or change the method of calculation of interest or the
currency of payment of principal or interest on, or reduce the minimum
rate of interest thereon, or impair the right to institute suit for
the enforcement of any such payment on or with respect to any such
debt security; or
. reduce the above-stated percentage in principal amount of outstanding
debt securities required to modify or alter such indenture.
The trustee, Wal-Mart and the finance subsidiaries, without the
consent of the holders of the debt securities, may execute an indenture or
supplemental indentures to:
. evidence the succession of another corporation to Wal-Mart or any of
the finance subsidiaries and the successor's assumption to pertinent
party's respective agreements and obligations with respect to the debt
securities and the indenture;
. add to covenants further restrictions or conditions that the board of
directors of the issuer of particular debt securities and the trustee
consider to be for the protection of holders of all or any of that
series of the debt securities and to make the occurrence of a default
in any of those additional covenants, restrictions or conditions a
default or an event of default under the indenture subject to certain
limitations;
. cure ambiguities or correct or supplement any provision contained in
the indenture or any supplemental indenture that may be defective or
inconsistent with another provision;
. provide for the issuance of debt securities whether or not then
outstanding under the indenture in coupon form and to provide for
exchangeability of the coupon form securities with other debt
securities issued under the indenture in fully registered form;
. establish new series of debt securities and the form or terms of such
series of debt securities and to provide for the issuance of
securities of any series so established; and
. evidence and provide for the acceptance of appointment of a successor
trustee and to change the indenture as necessary to have more than one
trustee under the indenture.
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Amalgamation, Consolidation, Merger or Sale of Assets
The indenture provides that Wal-Mart or we may, without the consent of
the holders of any of the outstanding debt securities, amalgamate, consolidate
with, merge into or transfer our assets substantially as an entirety to any
person, provided that:
. any successor to us assumes our obligations on the debt securities and
under the indenture or any successor to Wal-Mart assumes Wal-Mart's
obligations under the guarantees and the indenture;
. any successor to us must be an entity incorporated or organized under
the laws of the United States or the jurisdiction in which it is
organized immediately prior to the event, and that any successor to
Wal-Mart must be incorporated under the laws of the United States;
. after giving effect thereto, no event of default, as defined in the
indenture, shall have occurred and be continuing; and
. certain other conditions under the indenture are met. Any such
amalgamation, consolidation, merger or transfer of assets
substantially as an entirety that meets the conditions described above
would not create any event of default or default which would entitle
holders of the debt securities or the trustee, on their behalf, to
take any of the actions described above under "Events of Default and
Waiver."
Debt and Lien Incurrence
The indenture and the debt securities do not contain any provision
that would limit our right to incur other indebtedness, enter into any sale and
leaseback transaction or grant liens on our assets.
The Indenture Trustee
Bank One Trust Company, NA is the trustee under the indenture
governing the debt securities and will also be the registrar and paying agent.
The trustee is a national banking association with its principal offices in
Chicago, Illinois.
The trustee has two main roles under the indenture. First, the trustee
can enforce your rights against us or Wal-Mart if any of the actions described
above under "Events of Default and Waiver" occur. Second, the trustee performs
certain administrative duties for us. The trustee is entitled, subject to the
duty of the trustee during a default to act with the required standard of care,
to be indemnified by the holders of the debt securities before proceeding to
exercise any right or power under the indenture at the request of those holders.
The indenture provides that the holders of a majority in principal amount of the
debt securities may direct, with regard to that series, the time, method and
place of conducting any proceeding for any remedy available to the trustee, or
exercising any trust or power conferred on the trustee, with respect to the debt
securities, although the trustee may decline to act if that direction is
contrary to law or if the trustee determines in good faith that the proceeding
so directed would be illegal or would result in personal liability to it.
Bank One Trust Company, NA also serves as trustee under an indenture,
dated as of April 1, 1991, between it and Wal-Mart. As of May 31, 2001, Wal-Mart
had issued a total of $17.46 billion of its senior unsecured securities under
that indenture as supplemented through the date of this offering memorandum.
Bank One Trust Company, NA also serves as trustee under an indenture, dated as
of December 1, 1986, covering secured bonds issued in the aggregate principal
amount of $137,082,000 by the owner trustees of approximately 24 SAM'S Clubs
store properties that are leased to a subsidiary of Wal-Mart. Bank One Leasing
Corporation, an affiliate of Bank One Trust Company, NA established a business
trust that purchased 15 Wal-Mart discount stores for $53,661,785 and leased the
stores back to Wal-Mart for an initial term of 20 years in a transaction
consummated on December 22, 1992. On November 10, 1994, a second business trust
of which Bank One Leasing Corporation is a beneficiary purchased an additional
23 Wal-Mart discount stores for $128,842,500 and leased the stores back to Wal-
Mart for an initial term of 20 years. Bank One Trust Company, NA also serves as
trustee under an indenture, dated as of April 27, 2001 between it, Wal-Mart, as
guarantor, and Wal-Mart Canada Venture Corp., one of Wal-Mart's subsidiaries, On
April 27, 2001, Wal-Mart Canada Venture Corp. issued a total of $325 million of
its senior unsecured debt securities under that indenture that are guaranteed by
Wal-Mart.
Wal-Mart expects to maintain banking relationships in the ordinary
course of business with Bank One, NA, an affiliate of Bank One Trust Company,
NA. One or more of the Finance Subsidiaries may maintain banking relationships
in the ordinary course of business with Bank One, NA.
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DESCRIPTION OF THE GUARANTEES
The following discussion contains a description of the material
provisions of the guarantee and is subject to, and is qualified in its entirety
by reference to, the guarantee agreement and to the Trust Indenture Act. We urge
you to read the form of guarantee agreement that is filed as an exhibit to the
registration statement of which this prospectus forms a part. Wal-Mart will
unconditionally and irrevocably guarantee the payment of all principal and
interest on the debt securities. The guarantees will constitute general
unsecured, unsubordinated obligations of Wal-Mart, which will be equal in right
of payment with the existing and future senior, unsecured, unsubordinated debt
of Wal-Mart. In general, the guarantee provides that if we fail to pay any
interest payment or the principal when it is due and payable, Wal-Mart will,
without action by the trustee or any holder of the debt securities, pay the
amount of the interest payment or the principal then due. The guarantee will not
require the holders of the debt securities to take any action or institute any
proceeding against us in order to demand or receive payments under the terms of
the guarantee. Although upon making any such payment, Wal-Mart will be
subrogated to the rights of the holders of the debt securities against us for
any payment of interest or principal we fail to make, Wal-Mart will not be
entitled to make a claim against us with respect to those rights until the debt
securities have been paid in full.
TAX CONSEQUENCES TO HOLDERS
A prospectus supplement may describe the principal income tax
consequences of acquiring, owning and disposing of debt securities of some
series in the following circumstances:
. payment of the principal, interest and any premium in a currency other
than the U. S. dollar;
. the issuance of any debt securities with "original issue discount," as
defined for U. S. federal income tax purposes;
. the issuance of any debt securities with an associated "bond premium,"
as defined for U.S federal income tax purposes; and
. the inclusion of any special terms in debt securities that may have a
material effect for U. S. federal income tax purposes.
In addition, if the tax laws of foreign countries are material to a particular
series of debt securities, a prospectus supplement may describe the principal
income tax consequences of acquiring, owning and disposing of debt securities of
some series under similar circumstances.
PLAN OF DISTRIBUTION
General
We may sell the debt securities being offered hereby:
. directly to purchasers;
. through agents;
. through dealers;
. through underwriters; or
. through a combination of any of those methods of sale.
We may effect the distribution of the debt securities from time to time in
one or more transactions either:
. at a fixed price or prices which may be
changed;
. at market prices prevailing at the time of sale; or
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. at prices related to the prevailing market prices; or
. at negotiated prices.
We may directly solicit offers to purchase the debt securities. Offers to
purchase debt securities may also be solicited by agents designated by us from
time to time. Any of those agents, who may be deemed to be an "underwriter," as
that term is defined in the Securities Act of 1933, involved in the offer or
sale of the debt securities in respect of which this prospectus is delivered
will be named, and any commissions payable by us to that agent will be set forth
in the prospectus supplement.
If a dealer is utilized in the sale of the debt securities in respect of
which this prospectus is delivered, we will sell those debt securities to the
dealer, as principal. The dealer, who may be deemed to be an "underwriter," as
that term is defined in the Securities Act of 1933, may then resell those debt
securities to the public at varying prices to be determined by that dealer at
the time of resale.
If we use an underwriter or underwriters in the sales, we and Wal-Mart will
execute an underwriting agreement with those underwriters at the time of sale of
the debt securities and the name of the underwriters will be set forth in the
prospectus supplement, which will be used by the underwriters to make resales of
the debt securities in respect of which this prospectus is delivered to the
public. The compensation of any underwriters will also be set forth in the
prospectus supplement.
Underwriters, dealers, agents and other persons may be entitled, under
agreements that may be entered into with us, to indemnification by us against
certain civil liabilities, including liabilities under the Securities Act of
1933, or to our contributing to payments those underwriters, dealers, agents and
other persons are required to make.
Underwriters, dealers and agents may engage in transactions with, or
perform services for, us or any of our subsidiaries in the ordinary course of
business.
LEGAL MATTERS
The validity of the debt securities offered by this prospectus and any
prospectus supplement will be passed upon for us by Hughes & Luce, L.L.P., our
counsel.
EXPERTS
The consolidated financial statements of Wal-Mart Stores, Inc. and its
subsidiaries incorporated by reference in Wal-Mart Stores, Inc.'s Annual Report
on Form 10-K, as amended, for its fiscal year ended January 31, 2001, have been
audited by Ernst & Young LLP, independent auditors, as set forth in their report
thereon incorporated by reference therein and incorporated herein by reference.
Such financial statements are, and audited financial statements to be included
in subsequently filed documents will be, incorporated herein in reliance on the
reports of Ernst & Young LLP pertaining to such financial statements, to the
extent covered by consents filed with the Securities and Exchange Commission,
given on the authority of such firm as experts in accounting and auditing.
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PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
Securities and Exchange Commission registration fee $1,500,000
Printing and engraving 20,000*
Legal fees and charges 50,000*
Trustees' fees and expenses 10,000*
Blue Sky fees and expenses 3,000*
Accounting fees and expenses 20,000*
Rating agency fees --
Miscellaneous $ --
----------
$1,603,000
___________________
* Estimated.
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS
WAL-MART STORES, INC.
Wal-Mart Stores, Inc.'s By-Laws provide that each person who was or is
made a party to, or is involved in, any action, suit or proceeding by reason of
the fact that he or she was a director or officer of the Wal-Mart Stores, Inc.
(or was serving at the request of the Wal-Mart Stores, Inc. as a director,
officer, employee or agent for another entity) will be indemnified and held
harmless by the Wal-Mart Stores, Inc., to the full extent authorized by the
Delaware General Corporation Law (the "DGCL").
DGCL Section 145 provides, among other things, that the Wal-Mart
Stores, Inc. may indemnify any person who was or is a party or is threatened to
be made a party to any threatened, pending, or completed action, suit, or
proceeding (other than an action by or in the right of the Wal-Mart Stores,
Inc.) by reason of the fact that the person is or was a director, officer,
agent, or employee of the Wal-Mart Stores, Inc. or is or was serving at the Wal-
Mart Stores, Inc.'s request as a director, officer, agent, or employee of
another corporation, partnership, joint venture, trust, or other enterprise,
against expenses (including attorneys' fees), judgments, fines, and amounts paid
in settlement actually and reasonably incurred by the person in connection with
such action, suit, or proceeding. The power to indemnify applies only if such
person acted in good faith and in a manner he reasonably believed to be in the
best interest, or not opposed to the best interest, of the Wal-Mart Stores,
Inc., and, with respect to any criminal action or proceeding, had no reasonable
cause to believe his conduct was unlawful.
The power to indemnify applies to actions brought by or in the right
of the Wal-Mart Stores, Inc. as well, but only to the extent of defense expenses
(including attorneys' fees but excluding amounts paid in settlement) actually
and reasonably incurred and not to any satisfaction of a judgment or settlement
of the claim itself, and with the further limitation that in such actions no
indemnification shall be made in the event of any adjudication of liability to
the Wal-Mart Stores, Inc., unless the court believes that in light of all the
circumstances indemnification should apply.
To the extent a present or former director or officer of the Wal-Mart
Stores, Inc. is successful on the merits or otherwise in defense of any action,
suit, or proceeding described in the preceding two paragraphs, such person is
entitled, pursuant to DGCL Section 145, to indemnification against expenses
(including attorneys' fees) actually and reasonably incurred by such person in
connection therewith.
The Wal-Mart Stores, Inc.'s Certificate of Incorporation provides that
to the fullest extent permitted by Delaware General Corporation Law as the same
exists or may hereafter be amended, a director of the Wal-Mart Stores, Inc.
shall not be liable to the Wal-Mart Stores, Inc. or its stockholders for
monetary damages for breach of fiduciary duty as a director. The Delaware
General Corporation Law permits Delaware corporations to include in
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their certificates of incorporation a provision eliminating or limiting director
liability for monetary damages arising from breaches of their fiduciary duty.
The only limitations imposed under the statute are that the provision may not
eliminate or limit a director's liability (i) for breaches of the director's
duty of loyalty to the corporation or its stockholders, (ii) for acts or
omissions not in good faith or involving intentional misconduct or known
violations of law, (iii) for the payment of unlawful dividends or unlawful stock
purchases or redemptions, or (iv) for transactions in which the director
received an improper personal benefit.
The Wal-Mart Stores, Inc. is insured against liabilities that it may
incur by reason of its indemnification of officers and directors in accordance
with its By-Laws. In addition, directors and officers are insured, at the
Wal-Mart Stores, Inc.'s expense, against certain liabilities that might arise
out of their employment and are not subject to indemnification under the
By-Laws.
The foregoing summaries are necessarily subject to the complete text
of the statute, Certificate of Incorporation, By-Laws and agreements referred to
above and are qualified in their entirety by reference thereto.
WAL-MART CAYMAN (EURO) FINANCE CO.
The Company Law of the Cayman Islands does not limit the extent to
which a company's memorandum and articles of association may provide for
indemnification of officers and directors.
The articles of association for Wal-Mart Cayman (Euro) Finance Co.,
provide that every director, secretary, assistant secretary, and other officer
of the company and their personal representatives will be indemnified and held
harmless out of the assets and funds of the company against all actions,
proceedings, costs, charges, expenses, losses, damages or liabilities incurred
or sustained by them in or about the conduct of the company's business or
affairs or in the execution or discharge of their duties, powers, authorities or
discretions, including, any costs, expenses, losses or liabilities incurred by
them in defending any civil proceedings concerning the company or its affairs in
any court whether in the Cayman Islands or elsewhere. It also provides that such
persons will not be liable (a) for the acts, receipts, neglects, defaults or
omissions of any other director or officer or agent of the company or (b) for
any loss on account of defect of title to any property of the company or (c) on
account of the insufficiency of any security in or upon which any money of the
company shall be invested or (d) for any loss incurred through any bank, broker
or other similar person or (e) for any loss occasioned by any negligence,
default, breach of duty, breach of trust, error of judgment or oversight on
their part or (f) for any loss, damage or misfortune whatsoever which may happen
in or arise from the execution or discharge of the duties, powers, authorities,
or discretions of their office or in relation to their office, unless the damage
occurs due to their own dishonesty.
Wal-Mart Cayman (Euro) Finance Co. is insured against liabilities that
it may incur by reason of its indemnification of officers and directors in
accordance with its By-Laws. In addition, the company's directors and officers
are insured, at the Wal-Mart Stores, Inc.'s expense, against certain liabilities
that might arise out of their employment and are not subject to indemnification
under the By-Laws.
WAL-MART CAYMAN (CANADIAN) FINANCE CO.
The Company Law of the Cayman Islands does not limit the extent to
which a company's memorandum and articles of association may provide for
indemnification of officers and directors.
The articles of association for Wal-Mart Cayman (Canadian) Finance
Co., provide that every director, secretary, assistant secretary, or other
officer of the company and their personal representatives will be indemnified
and held harmless out of the assets and funds of the company against all
actions, proceedings, costs, charges, expenses, losses, damages or liabilities
incurred or sustained by them in or about the conduct of the company's business
or affairs or in the execution or discharge of their duties, powers, authorities
or discretions, including, any costs, expenses, losses or liabilities incurred
by them in defending any civil proceedings concerning the company or its affairs
in any court whether in the Cayman Islands or elsewhere. It also provides that
such persons will not be liable (a) for the acts, receipts, neglects, defaults
or omissions of any other director or officer or agent of the company or (b) for
any loss on account of defect of title to any property of the company or (c) on
account of the insufficiency of any security in or upon which any money of the
company shall be invested or (d) for any loss incurred through any bank, broker
or other similar person or (e) for any loss occasioned by any negligence,
default,
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breach of duty, breach of trust, error of judgment or oversight on their part or
(f) for any loss, damage or misfortune whatsoever which may happen in or arise
from the execution or discharge of the duties, powers, authorities, or
discretions of their office or in relation to their office, unless the damage
occurs due to their own dishonesty.
Wal-Mart Cayman (Canadian) Finance Co. is insured against liabilities
that it may incur by reason of its indemnification of officers and directors in
accordance with its By-Laws. In addition, the company's directors and officers
are insured, at the Wal-Mart Stores, Inc.'s expense, against certain liabilities
that might arise out of their employment and are not subject to indemnification
under the By-Laws.
WAL-MART CAYMAN (STERLING) FINANCE CO.
The Company Law of the Cayman Islands does not limit the extent to
which a company's memorandum and articles of association may provide for
indemnification of officers and directors.
The articles of association for Wal-Mart Cayman (Sterling) Finance
Co., provide that every director, secretary, assistant secretary, and other
officer of the company and their personal representatives will be indemnified
and held harmless out of the assets and funds of the company against all
actions, proceedings, costs, charges, expenses, losses, damages or liabilities
incurred or sustained by them in or about the conduct of the company's business
or affairs or in the execution or discharge of their duties, powers, authorities
or discretions, including, any costs, expenses, losses or liabilities incurred
by them in defending any civil proceedings concerning the company or its affairs
in any court whether in the Cayman Islands or elsewhere. It also provides that
such persons will not be liable (a) for the acts, receipts, neglects, defaults
or omissions of any other director or officer or agent of the company or (b) for
any loss on account of defect of title to any property of the company or (c) on
account of the insufficiency of any security in or upon which any money of the
company shall be invested or (d) for any loss incurred through any bank, broker
or other similar person or (e) for any loss occasioned by any negligence,
default, breach of duty, breach of trust, error of judgment or oversight on
their part or (f) for any loss, damage or misfortune whatsoever which may happen
in or arise from the execution or discharge of the duties, powers, authorities,
or discretions of their office or in relation to their office, unless the damage
occurs due to their own dishonesty.
Wal-Mart Cayman (Sterling) Finance Co. is insured against liabilities
that it may incur by reason of its indemnification of officers and directors in
accordance with its By-Laws. In addition, the company's directors and officers
are insured, at the Wal-Mart Stores, Inc.'s expense, against certain liabilities
that might arise out of their employment and are not subject to indemnification
under the By-Laws.
ITEM 16. EXHIBITS
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* To be filed by amendment or as an exhibit to a document to be
incorporated by reference herein in connection with any underwritten offering of
a debt security.
ITEM 17. UNDERTAKINGS
(a) Each undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales
are being made, a post-effective amendment to this Registration
statement:
(i) To include any prospectus required by
Section 10(a)(3) of the Securities Act;
(ii) To reflect in the Prospectus any facts or
events arising after the effective date of the Registration Statement
(or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in
the information set forth in the Registration Statement.
Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar amount of securities offered
would not exceed that which was registered) and any deviation from the
low or high end of the estimated offering range may be reflected in
the form of a prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent
no more than a 20 percent change in the maximum aggregate offering
price set forth in the "Calculation of Registration Fee" table in the
effective Registration Statement;
(iii) To include any material information with
respect to the plan of distribution not previously disclosed in the
Registration Statement or any material change to such information in
the Registration Statement.
(2) That, for the purpose of determining any
liability under the Securities Act of 1933, each such post-effective
amendment shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities
at the time shall be deemed to be the initial bona fide offering
thereof.
(3) To remove from registration by means of a
post-effective amendment any of the securities being registered which
remain unsold at the termination of the offering.
(b) Each undersigned registrant hereby undertakes that, for
purposes of determining any liability under the Securities Act of
1933, each filing of Wal-Mart's annual report pursuant to Section
13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where
applicable, each filing of an employee benefit plan's annual report
pursuant to Section 15(d) of the Securities Exchange Act of 1934) that
is incorporated by reference in the Registration Statement shall be
deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
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(c) Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Securities Act of 1933
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel in the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Securities Act of 1933
and will be governed by the final adjudication of such issue.
(d) Each undersigned Registrant hereby undertakes that:
(1) For purposes of determining any liability under the
Securities Act of 1933, the information omitted from the form of
prospectus filed as part of this registration statement in reliance
upon Rule 430A and contained in a form of prospectus filed by the
registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the
Securities Act shall be deemed to be part of this registration
statement as of the time it was declared effective.
(2) For the purpose of determining any liability under the
Securities Act of 1933, each post-effective amendment that contains a
form of prospectus shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such
securities at the time shall be deemed to be the initial bona fide
offering thereof.
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POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature
appears below constitutes and appoints H. Lee Scott, Jr., Thomas M. Schoewe and
James A. Walker, Jr. and each of them, his or her true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for him or her in his or her name, place and stead, in any and
all capacities, to sign any or all amendments to this Registration Statement and
additional Registration Statements relating to the same offering, and to file
the same, with all exhibits thereto, and all other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully to all intents and purposes as he or she might
or could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents, or any of them, or their or his or her substitute
or substitutes, may lawfully do or cause to be done by virtue thereof.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Bentonville, State of Arkansas, on July 6, 2001.
WAL-MART STORES, INC.
By: /s/ H. Lee Scott, Jr.
------------------------------
H. Lee Scott, Jr.
President and Chief
Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
DATE: July 6, 2001 /s/ S. Robson Walton
------------------------------
S. Robson Walton
Chairman of the Board and
Director
DATE: July 6, 2001 /s/ H. Lee Scott, Jr.
------------------------------
H. Lee Scott, Jr.
President, Chief Executive
Officer and Director
(Principal Executive
Officer)
DATE: July 6, 2001 /s/ Thomas M. Schoewe
-------------------------------
Thomas M. Schoewe
Executive Vice President
and Chief Financial Officer
(Principal Financial
Officer)
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DATE: July 6, 2001 /s/ James A. Walker, Jr.
---------------------------------------
James A. Walker, Jr.
Senior Vice President and Controller
(Principal Accounting Officer)
DATE: July __, 2001
---------------------------------------
John T. Chambers
Director
DATE: July 6, 2001 /s/ Stephen Friedman
---------------------------------------
Stephen Friedman
Director
DATE: July 6, 2001 /s/ Stanley C. Gault
---------------------------------------
Stanley C. Gault
Director
DATE: July 6, 2001 /s/ David D. Glass
---------------------------------------
David D. Glass
Director
DATE: July 6, 2001 /s/ Ronald A. Hernandez
---------------------------------------
Ronald A. Hernandez
Director
DATE: July 6, 2001 /s/ J. Paul Reason
---------------------------------------
J. Paul Reason
Director
DATE: July __, 2001
---------------------------------------
Elizabeth A. Sanders
Director
DATE: July 6, 2001 /s/ Jack C. Shewmaker
---------------------------------------
Jack C. Shewmaker
Director
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DATE: July 6, 2001 /s/ Donald G. Soderquist
---------------------------------------
Donald G. Soderquist
Director
DATE: July 6, 2001 /s/ Jose H. Villarreal
---------------------------------------
Jose H. Villarreal
Director
DATE: July __, 2001 _______________________________________
John T. Walton
Director
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Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Bentonville, State of Arkansas, on July 6, 2001.
WAL-MART CAYMAN (EURO) FINANCE CO.
By: /s/ H. Lee Scott, Jr.
__________________________________
H. Lee Scott, Jr.
President and Chief Executive
Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
DATE: July 6, 2001 /s/ H. Lee Scott, Jr.
__________________________________
H. Lee Scott, Jr.
President and Chief Executive
Officer
(Principal Executive Officer)
DATE: July 6, 2001 /s/ Thomas M. Schoewe
__________________________________
Thomas M. Schoewe
Director and Chief Financial
Officer
(Principal Financial Officer)
DATE: July 6, 2001 /s/ James A. Walker, Jr.
__________________________________
James A. Walker, Jr.
Controller
(Principal Accounting Officer)
DATE: July 6, 2001 /s/ J.J. Fitzsimmons
__________________________________
J.J. Fitzsimmons
Director and Treasurer
DATE: July 6, 2001 /s/ Rick W. Brazile
__________________________________
Rick W. Brazile
Director
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Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Bentonville, State of Arkansas, on July 6, 2001.
WAL-MART CAYMAN (CANADIAN) FINANCE CO.
By: /s/ H. Lee Scott, Jr.
__________________________________
H. Lee Scott, Jr.
President and Chief Executive
Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
DATE: July 6, 2001 /s/ H. Lee Scott, Jr.
__________________________________
H. Lee Scott, Jr.
President and Chief Executive
Officer
(Principal Executive Officer)
DATE: July 6, 2001 /s/ Thomas M. Schoewe
__________________________________
Thomas M. Schoewe
Director and Chief Financial
Officer
(Principal Financial Officer)
DATE: July 6, 2001 /s/ James A. Walker, Jr.
__________________________________
James A. Walker, Jr.
Controller
(Principal Accounting Officer)
DATE: July 6, 2001 /s/ J.J. Fitzsimmons
__________________________________
J.J. Fitzsimmons
Director and Treasurer
DATE: July 6, 2001 /s/ Rick W. Brazile
__________________________________
Rick W. Brazile
Director
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Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Bentonville, State of Arkansas, on July 6, 2001.
WAL-MART CAYMAN (STERLING) FINANCE CO.
By: /s/ H. Lee Scott, Jr.
------------------------------
H. Lee Scott, Jr.
President and Chief Executive
Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
DATE: July 6, 2001 /s/ H. Lee Scott, Jr.
-----------------------------------
H. Lee Scott, Jr.
President and Chief Executive
Officer
(Principal Executive Officer)
DATE: July 6, 2001 /s/ Thomas M. Schoewe
------------------------------------
Thomas M. Schoewe
Director and Chief Financial
Officer
(Principal Financial Officer)
DATE: July 6, 2001 /s/ James A. Walker, Jr.
------------------------------------
James A. Walker, Jr.
Controller
(Principal Accounting Officer)
DATE: July 6, 2001 /s/ J. J. Fitzsimmons
------------------------------------
J.J. Fitzsimmons
Director and Treasurer
DATE: July 6, 2001 /s/ Rick W. Brazile
------------------------------------
Rick W. Brazile
Director
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