Macy's Prices $500M Senior Notes Due 2033

Macy's has announced the pricing of a $500 million debt offering through its wholly-owned subsidiary, Macy's Retail Holdings. The offering consists of 7.375% senior notes due 2033 with a maturity date of August 1, 2033. The closing of the offering is expected to occur on August 3, 2022, subject to customary closing conditions.

Macy's Inc. (NYSE: M) has announced the pricing of a $500 million debt offering through its wholly-owned subsidiary, Macy's Retail Holdings, LLC. The offering consists of 7.375% senior notes due 2033, with a maturity date of August 1, 2033. The closing of the offering is expected to occur on July 29, 2025, subject to customary closing conditions [1].

The proceeds from the offering will be used to fund a concurrent tender offer, redeem approximately $587 million of certain existing senior notes and debentures, and pay associated fees and expenses. The redemption and tender offer are contingent on the completion of the notes offering, but the notes offering itself is not dependent on the success of either the redemption or tender offer [1].

Macy's maintains a healthy liquidity position, with a current ratio of 1.43 and total debt of $5.66 billion. The senior notes are unsecured obligations of Macy's Retail Holdings and are guaranteed by Macy's Inc. The notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to non-U.S. persons under Regulation S. The securities have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption [2].

In recent earnings reports, Macy's reported first-quarter earnings per share (EPS) of $0.16, surpassing consensus estimates of $0.15. However, the company has provided a more conservative earnings guidance for fiscal year 2025, with a midpoint of $1.80 per share, down from the previous forecast of $2.15. Analysts maintain a mixed outlook for Macy's, noting both positive sales trends and ongoing challenges in the retail sector [2].

References:
[1] https://www.businesswire.com/news/home/20250714883876/en/Macys-Inc.-Announces-Pricing-of-Senior-Notes
[2] https://ca.investing.com/news/company-news/macys-to-offer-500-million-in-senior-notes-due-2033-93CH-4100251