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Macy's Retail prices public offering of senior notes for $1bn

RBR Staff Writer Published 15 November 2012

Macy’s Retail, a wholly-owned subsidiary of Macy’s, has priced the public offering of senior notes for proceeds of $1bn.

The notes were priced in two tranches - the first $750m with an interest rate of 2.875% and will mature on 15 February 2023.

In the second tranche, Macy's Retail Holdings priced the offering of senior notes for proceeds of $250m and these notes bear an interest rate of 4.30% expected to mature on 15 February 2043.

The interest will be paid on 15 February and 15 August of every year, starting from 15 February 2013 and the the transaction is expected to close on or about 20 November 2012.

Macy' intends to use the proceeds to fund amounts payable in connection with its previously announced tender offer for a portion of its outstanding debt securities.

The remianing net proceeds will be used for general corporate purposes, including an early financing of its 5.875% senior notes due 2013.

Macy's operates about 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's, as well as the macys.com and bloomingdales.com websites.