Macy’s, Inc. Announces Early Redemption of $1.3 Billion in Senior Secured Notes
04 August 2021 - 7:00AM
Business Wire
Elimination of 8.375% Senior Secured Notes
Further Strengthens Company’s Balance Sheet, Optimizes Capital
Allocation and Facilitates the Delivery of Strong and Sustainable
Shareholder Returns
Macy’s, Inc. (NYSE: M) today issued a notice of redemption to
redeem $1.3 billion in principal amount of its 8.375% Senior
Secured Notes due 2025 (the “Notes”) on August 17, 2021. This
voluntary early redemption covers the entire amount of the
outstanding Notes.
“Investing in the profitable growth of Macy’s, Inc. remains our
priority. We are pleased that, as a result of our disciplined
approach to capital allocation, especially over the past 16 months,
coupled with a return of consumer demand, we are now well
positioned to also focus on further enhancing our long-term
financial stability and value creation,” said Adrian Mitchell,
chief financial officer of Macy’s, Inc. “As a result of the
redemption of this long-term debt, we are firmly on track to be at
or below our target leverage ratio, achieving an investment grade
financial profile, by the end of the year. These actions further
strengthen our balance sheet, allowing us to invest in our business
to deliver strong and sustainable shareholder returns as a
digitally led omnichannel retailer.”
Notes will be redeemed by the Company at a redemption price of
100% of their principal amount, plus accrued and unpaid interest up
to, but excluding, the redemption date of August 17, 2021, plus the
applicable premium due to holders of the Notes in connection with
an early redemption. As a result of the early redemption, Macy’s,
Inc. expects to record a pre-tax charge primarily related to the
recognition of the redemption premium and other costs of
approximately $185 million in its fiscal third quarter. This
pre-tax charge will be excluded from Adjusted diluted earnings per
share. In addition, Macy’s, Inc. expects to realize annualized
interest expense savings of approximately $120 million. Neither the
charge nor the interest expense savings was contemplated in the
full-year 2021 expectations provided in May.
Notes are to be surrendered to U.S. Bank National Association in
exchange for the payment of the redemption price as more fully
described in the notice of redemption sent to the registered
holders of Notes.
About Macy’s, Inc.
Macy’s, Inc. (NYSE: M) is one of the nation’s premier
omnichannel retailers. Headquartered in New York City, the company
comprises three retail brands: Macy’s, Bloomingdale’s and
Bluemercury. With a robust e-commerce business, rich mobile
experience and a national stores footprint, our customers can shop
the way they live — anytime and through any channel. For more
information, visit macysinc.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210803006107/en/
Media - Blair Rosenberg media@macys.com
Investors - Mike McGuire investors@macys.com
Macys (NYSE:M)
Historical Stock Chart
From Apr 2024 to May 2024
Macys (NYSE:M)
Historical Stock Chart
From May 2023 to May 2024