Macy's Raises $500M in Senior Notes to Reduce Debt

Macy's launches $500 million senior notes with a 7.375% interest rate to support debt redemption. Analysts predict a 6.07% upside in Macy's stock with an average price target of $13.24. GuruFocus estimates a potential 17.31% rise in Macy's stock value over the next year. The move is seen as a strategic step to bolster Macy's financial standing and manage its debt portfolio for improved fiscal health.

Macy's Inc. (NYSE: M) has announced the issuance of $500 million in senior notes, carrying a 7.375% interest rate, with a maturity date set for August 1, 2033. The notes, priced at 100% of their principal amount, will be used to fund a concurrent tender offer, redeem approximately $587 million of existing senior notes and debentures, and cover related fees and expenses [1].

Analysts have responded positively to the move, predicting a slight upside in Macy's stock. The average price target stands at $13.24, suggesting a potential 6.07% increase from the current trading price of $12.48. Additionally, GuruFocus estimates a 17.31% rise in Macy's stock value over the next year, projecting a fair value of $14.64 [2].

The issuance of these senior notes is seen as a strategic step to bolster Macy's financial standing and manage its debt portfolio for improved fiscal health. The company intends to use the proceeds to support its debt management and financial stability.

References:
[1] https://www.businesswire.com/news/home/20250714883876/en/Macys-Inc.-Announces-Pricing-of-Senior-Notes
[2] https://www.gurufocus.com/news/2976368/macys-m-launches-500-million-senior-notes-offering