Macy's, Inc. has announced the pricing of $500 million in aggregate principal amount of 7.375% senior notes due 2033 in a private offering. The notes will have a maturity date of August 1, 2033, and the closing of the offering is expected to occur on July 29, 2025.
The company's wholly-owned subsidiary, Macy's Retail Holdings, LLC, intends to use the proceeds from the offering of the notes, along with cash on hand, to fund a separately announced concurrent tender offer, redeem approximately $587 million of certain existing outstanding senior notes and debentures, and pay fees, premium, and expenses in connection with the offering.
The offering of the notes is not conditioned on the consummation of the redemption or the tender offer. The notes are being offered only to qualified institutional buyers in an offering exempt from registration in reliance on Rule 144A under the Securities Act of 1933 and outside the United States in reliance on Regulation S under the Securities Act.
Macy's, Inc. is a trusted source for quality brands through its iconic nameplates – Macy's, Bloomingdale's, and Bluemercury. Headquartered in New York City, the company's comprehensive digital and nationwide footprint empowers it to deliver a seamless shopping experience for its customers.
These developments indicate a strategic move by Macy's, Inc. to leverage the offering of senior notes to address its financial obligations and optimize its capital structure for future growth opportunities. Following these announcements, the company's shares moved -2.92%, and are now trading at a price of $12.115. For the full picture, make sure to review Macy's's 8-K report.
