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Things looking up for Macy’s, successfully completes debt tender offer


CINCINNATI — Good news for Macy’s, which has closed the cash tender offer by its wholly owned subsidiary, Macy’s Retail Holdings, Inc., to purchase up to $700 million in aggregate principal amount of its outstanding debt securities.

“Through this transaction and our recent debt issuance, we have successfully improved our debt maturity profile and decreased our ongoing interest expense,” said Karen M. Hoguet, Macy’s, Inc. CFO.

Macy’s expects to record additional interest expense relating to the tender offer of approximately $133 million ($83 million after income taxes) prior to Feb. 2, 2013. By completing the tender offer and related financing, Macy’s interest expense is anticipated to be reduced on a full year basis by $30 million.

Because the maximum aggregate principal amount of $700 million for the tender offer was exceeded, and the maximum aggregate principal amount of $400 million for the 5.90% senior notes due 2016 was also exceeded, Macy’s Retail Holdings did not accept all of the Notes tendered for purchase.

The consideration for the notes accepted for purchase, as calculated by the dealer managers and announced on Nov. 13, plus accrued and unpaid interest, will be paid today, Nov. 28. Notes that have been tendered but not accepted will be promptly returned to the tendering parties.

Credit Suisse Securities LLC served as the coordinating dealer manager and BofA Merrill Lynch and J.P. Morgan Securities LLC served as the other dealer managers for the tender offer. Global Bondholder Services Corporation is the information agent and the depositary.

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