Kohl's Corporation Announces $360M Senior Secured Notes Offering

By Greg Peters • Tuesday, May 13 15:24 • Permanent Link

Kohl's Corporation (NYSE: KSS) has announced its proposed private offering of approximately $360 million aggregate principal amount of senior secured notes due 2030. The notes are expected to be secured by 11 distribution centers and e-commerce fulfillment facilities, held in a newly-formed holding company. The company intends to use the net proceeds from the sale of the notes to repay borrowings under its revolving credit facility and to borrow under its revolving credit facility to repay all of its 4.25% notes due 2025 at maturity.

The offering of the notes is subject to market and other conditions, and there is no assurance that it will be completed or, if completed, the terms on which it will be completed. The notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Kohl's plans to offer and issue the notes only to qualified institutional buyers as defined in Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S. The notes will be subject to restrictions on transferability and resale.

Kohl's is a leading omnichannel retailer with more than 1,100 stores in 49 states, an online presence at kohls.com, and through the Kohl's app. The company is committed to making a positive impact in the communities it serves.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities and shall not constitute an offer to sell, or a solicitation of an offer to buy, or a sale of, the notes or any other securities in any jurisdiction in which such offer, solicitation, or sale is unlawful.

The offering is made only by, and pursuant to, the terms set forth in the related offering memorandum. As a result of these announcements, the company's shares have moved 12.82% on the market, and are now trading at a price of $7.57. For more information, read the company's full 8-K submission here.

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