Macy’s, Inc. to Redeem 7.875% Senior Notes Due 2015
November 18 2014 - 3:15PM
Business Wire
Macy’s, Inc. (NYSE:M) today announced that its wholly owned
subsidiary, Macy’s Retail Holdings, Inc., will redeem for cash the
entire $406.62 million aggregate principal amount outstanding of
its 7.875% senior notes due 2015 (CUSIP 55616XAE7) on December 15,
2014. The 2015 senior notes were issued in June 2008.
“By retiring this debt early, we are taking advantage of
favorable credit markets and reducing our ongoing interest
expense,” said Karen Hoguet, chief financial officer of Macy’s,
Inc. “We will be using proceeds from our recent debt issuance
announced on November 13, 2014, to redeem these notes in a
make-whole call transaction that is NPV positive.”
The 2015 senior notes will be redeemed at a redemption price
that includes a make-whole premium, plus any interest accrued and
unpaid to the redemption date. The premium, which will be included
in interest expense and presented as a premium on early retirement
of debt on the company’s consolidated statements of income in the
fourth quarter of 2014, is estimated to be approximately $16 to $18
million. This premium was not included in the earnings guidance
provided on November 12, 2014.
A notice of redemption is being sent to all currently registered
holders of the 2015 senior notes by the trustee, U.S. Bank National
Association. Copies of the notice of redemption and additional
information relating to the procedure for redemption may be
obtained from U.S. Bank National Association by calling
1-800-934-6802.
Macy’s, Inc., with corporate offices in Cincinnati and New York,
is one of the nation’s premier retailers, with fiscal 2013 sales of
$27.931 billion. The company operates about 840 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. The company also operates 13
Bloomingdale’s Outlet stores. Bloomingdale’s in Dubai is operated
by Al Tayer Group LLC under a license agreement.
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of
Macy’s management and are subject to significant risks and
uncertainties. Actual results could differ materially from those
expressed in or implied by the forward-looking statements contained
in this release because of a variety of factors, including
conditions to, or changes in the timing of, proposed transactions,
prevailing interest rates and non-recurring charges, competitive
pressures from specialty stores, general merchandise stores,
off-price and discount stores, manufacturers’ outlets, the
Internet, mail-order catalogs and television shopping and general
consumer spending levels, including the impact of the availability
and level of consumer debt, the effect of weather and other factors
identified in documents filed by the company with the Securities
and Exchange Commission.
(NOTE: Additional information on Macy’s, Inc., including past
news releases, is available at www.macysinc.com/pressroom.)
Macy’s, Inc.MediaJim Sluzewski, 513-579-7764orInvestorMatt
Stautberg, 513-579-7780
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