Macy's Amends $2 Billion Credit Agreement

Cincinnati Macy's Inc. said Wednesday it agreed to change its $2 billion credit facility to make it more flexible, given the uncertainty in the economy.

The company said the amendments on the credit agreement led by Bank of America and JPMorgan gives the department store operator more flexibility and "should remove any question about the financial strength of Macy's Inc., including our ability to retire $950 million in debt that is maturing in 2009," said Macy's CEO Terry Lundgren in a statement.

The changes relate to the facility's covenants, which are formal debt agreements designed to give a lender more security.

The size and the maturity date of the facility, Aug. 31, 2012, are unchanged.

Macy's, with corporate offices in Cincinnati and New York, has no current borrowings against the current credit agreement, which is expected to become effective on Jan. 5.