Macy’s Looks to Raise $1.1 Billion in Fresh Funds

Nina Trentmann
May 26, 2020 6:38 pm

Department store operator Macy’s Inc. launched a funding round offering $1.1 billion in bonds to get the struggling retailer through the lockdowns enforced during the coronavirus pandemic.

New York-based Macy’s Tuesday said it plans to use the proceeds of the bond sale to repay borrowings under a current facility. It will issue senior notes, set to mature in 2025, that will be secured by 35 stores and 10 distribution centers, the retailer said.

The offering is subject to Macy’s entering into a $3 billion revolving credit facility which includes a $300 million bridge credit facility expiring at the end of this year. The revolving credit facility, scheduled to mature in 2024, will be backed by inventory owned by Macy’s, the company said