Macy’s raises 4.5 billion dollars in funding

Macy’s, Inc. has announced the closing on approximately 4.5 billion dollars of new financing, including its previously announced 1.3 billion dollars of 8.375 percent senior secured notes, as well as a new 3.15 billion dollars asset-based credit agreement. In addition, the company said in a statement that it has amended and substantially reduced the credit commitments of its existing 1.5 billion dollars unsecured credit agreement.

“We are pleased with the strong demand from new investors in our notes issuance, which allowed us to tighten pricing and increase the size of the offering. The high quality of our real estate portfolio positioned us well to execute this offering. Additionally, the continued commitment from our bank group allowed us to more than double the size of our existing revolving credit facility,” said Jeff Gennette, Chairman and CEO of Macy’s, Inc.

The company added that it intends to use the proceeds of the notes offering, along with cash on hand, to repay the outstanding borrowings under the existing 1.5 billion dollars unsecured credit agreement. With the closing of these financings, the company expects to have sufficient liquidity to address the needs of the business.

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