Macy’s seeks £1bn in bond sale

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The retailer will use the proceeds of the bond sale to repay funds borrowed under a revolving credit facility. It will issue senior notes, set to mature in 2025, that will be secured by 35 stores and 10 distribution centres, the Wall Street Journal has reported. 

Macy’s drew down a $1.5bn (£1.15bn) credit facility in March, after it was forced to temporarily shut all 775 stores. It has been gradually reopening these since the start of this month, but many still remain closed.

The bond offering is subject to it entering into a $3bn (£2.45bn) revolving credit facility, which includes a $300m (£244m) bridge credit facility expiring at the end of 2020. The revolving credit facility, scheduled to mature in 2024, will be backed by inventory owned by Macy’s.  

In February it was revealed that Macy’s is set to close 125 stores and axe thousands of head office roles over the coming three years. This will result in 2,000 job losses, accounting for 9% of its head office corporate and support functions. 

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