Jonathan F. Foster was Appointed an Independent Director of a Wholly-Owned Subsidiary of Macy’s as the Company Pursues a Restructuring
Macy’s, Inc. Refinancing Plans
New York, New York, May 26, 2020 – Macy’s, Inc. today announced the offering of $1.1 billion of senior secured notes, which will mature in 2025. We intend to use these notes, along with cash on hand, to repay the borrowings under our current $1.5 billion credit facility. The notes will be secured by certain real estate assets, including three iconic urban properties – Downtown Brooklyn, Union Square and State Street – 35 stores located in select malls and 10 distribution centers.
In connection with this bond offering, we anticipate that we will also enter into an asset-based credit facility. Upon closing of the credit facility, we expect to have approximately $3 billion of revolving credit commitments, including a $300 million revolving bridge credit facility that will mature at the end of the 2020 calendar year. The credit facility will be backed by the majority of our owned inventory and will mature in 2024.
Upon the completion of the bond offering, as well as our entry into the credit facility, we expect to have more than sufficient liquidity to fund our operations and retire upcoming debt maturities in fiscal 2020 and fiscal 2021.
About Current Capital Partners LLC
Current Capital Partners LLC is an independent advisory and merchant banking firm focused primarily on the industrial and services sectors. We provide mergers and acquisitions and restructuring advisory services, corporate management services, and private equity investing. The mergers and acquisitions advisory effort offers high quality financial advisory services – including ideas, buy-side and sell-side execution, strategic and capital structure reviews, restructuring advisory and related services – for corporate and investment firm clients seeking an independent perspective and senior attention. In our management services effort, we manage investments, provide restructuring advice, sit on Boards of Directors and provide related consulting services for other investors and financial institutions; and offer advice and expert witness services in complex corporate litigation. Our private equity investing business helps create value, primarily in lower middle market and smaller companies, with an integrated operating, finance and investment approach. Our Advisory Board and Executive Network are important advantages for our clients. Learn more at www.currentcap.com.
Jonathan F. Foster
Telephone: +1 212 223 0618