Macy’s raises about $4.5B in financing

Macy”™s, Inc., has announced closing on approximately $4.5 billion in financing, which the department store chain expects will provide sufficient liquidity to address its business needs. Those needs include funding operations and the purchase of inventory for upcoming merchandising seasons, resolving its accrued payables obligations, and repaying upcoming debt maturities in fiscal 2020 and fiscal 2021.

The company comprises three retail brands ”“ Macy”™s, Bloomingdale”™s and Bluemercury.

The Macy”™s brand has 38 stores in New York state, including in White Plains, Yonkers, Yorktown Heights, Middletown, Poughkeepsie and West Nyack. It has nine stores in Connecticut, including locations in Stamford and Danbury.

There are Bloomingdale”™s stores in White Plains and Norwalk.

Locations for Bluemercury beauty stores and spas include Rye and Bronxville as well as Greenwich, Darien, Westport and New Canaan.

The financing includes a new $3.15 billion asset-based credit agreement and $1.3 billion of previously announced senior secured notes.

“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. 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,” Jeff Gennette, the company”™s chairman and CEO said. “We are confident this liquidity will ensure Macy”™s, Inc. remains a strong company to work for, invest in and partner with.”

Macy”™s Inc. had fiscal 2019 sales of $24.6 billion. It had net income of $564 million.