Macy's has raised $4.5 billion in fresh financing.
Macy's said it raised $1.3 billion from the sale of senior secured notes maturing in 2025, alongside $3.15 billion from a new credit agreement that is secured by the retailers' existing assets. Macy's said the cash will provide sufficient liquidity to address its business needs, including the purchase of new inventory and the repayment of upcoming debt maturities over the next two years.
The group also said it will likely post a first-quarter loss of $2.03 per share, firmly ahead of the Street consensus forecast of $2.34 per share, while noting improving e-commerce trends. Net sales, Macy's said, were forecast at $3.02 billion
“We are pleased with the strong demand from new investors in our notes issuance, which allowed us to tighten pricing and increase the size of the offering," said CEO Jeff Gennette. "The high quality of our real estate portfolio positioned us well to execute this offering. Additionally, the continued commitment from our bank group allowed us to more than double the size of our existing revolving credit facility."
“Combined with our ongoing Polaris initiatives, we are confident this liquidity will ensure Macy’s, Inc. remains a strong company to work for, invest in and partner with,” he added.