Macy’s, Inc. (NYSE:M) today announced the closing of the cash tender offer by its wholly owned subsidiary, Macy’s Retail Holdings, Inc., to purchase up to $700 million in aggregate principal amount of its outstanding debt securities listed on the table below (the “Notes”).
“Through this transaction and our recent debt issuance, we have successfully improved our debt maturity profile and decreased our ongoing interest expense,” said Karen M. Hoguet, Macy’s, Inc. chief financial officer.
Macy’s, Inc. expects to record additional interest expense relating to the tender offer of approximately $133 million ($83 million after income taxes) prior to February 2, 2013. By completing the tender offer and related financing, Macy’s interest expense is anticipated to be reduced on a full year basis by $30 million.
An aggregate principal amount of $1,178,097,000 of Notes was validly tendered in the tender offer and not validly withdrawn. The table below identifies the principal amount of each series of Notes validly tendered and not validly withdrawn and the principal amount that Macy’s Retail Holdings has accepted for purchase:
|CUSIP Number||Title of Security||
Acceptance Priority Level (1)
Aggregate Principal Amount Outstanding
Principal Amount Tendered
Principal Amount Accepted for Purchase
Final Proration Factor (2)
|314275AA6||5.90% Senior Notes due 2016||1||$976,966,000||$696,175,000||$400,000,000||57.5%|
|577778BF9||7.45% Debentures due 2016||2||$122,700,000||$63,734,000||$63,734,000||100.0%|
|577778AX1||7.50% Debentures due 2015||3||$100,000,000||$31,011,000||$31,011,000||100.0%|
|55616XAE7||7.875% Senior Notes due 2015||4||$611,875,000||$387,177,000||$205,255,000||53.0%|
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