Macy's, Inc. Prices $550 Million of 10-Year Senior Notes and $250 Million of 30-Year Senior Notes
CINCINNATI, Jan 10, 2012 (BUSINESS WIRE) --Macy's, Inc. (NYSE:M) today announced the pricing of the public offering of $550 million aggregate principal amount of senior notes due 2022 and $250 million aggregate principal amount of senior notes due 2042 by its wholly owned subsidiary, Macy's Retail Holdings, Inc. The 2022 senior notes will bear interest at a rate of 3.875 percent per annum and the 2042 senior notes will bear interest at a rate of 5.125 percent per annum. The senior notes will be fully and unconditionally guaranteed on a senior unsecured basis by Macy's, Inc. The transaction is expected to close on or about January 13, 2012.
The net proceeds from the offering will be used by Macy's Retail Holdings for general corporate purposes, which may include the retirement of indebtedness maturing in 2012. About $790 million in debt is scheduled for retirement in March and July 2012.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated are acting as joint book-running managers. Jones Day is acting as counsel to Macy's, Inc. and Macy's Retail Holdings.
Copies of the prospectus and prospectus supplement relating to the senior notes may be obtained for free by visiting EDGAR on the SEC website at http://www.sec.gov. Alternatively, copies of the prospectus and prospectus supplement may be obtained from any of the joint book-running managers by contacting Credit Suisse Securities (USA) LLC at 800-221-1037, J.P. Morgan Securities LLC collect at 1-212-834-4533 or Merrill Lynch, Pierce, Fenner & Smith Incorporated at 1-800-294-1322.
Macy's, Inc., with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2010 sales of $25 billion. The company operates about 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's, as well as the macys.com and bloomingdales.com websites. The company also operates seven Bloomingdale's Outlet stores.
All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates, changes in expected synergies, cost savings and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, new and established forms of home shopping (including the Internet, mail-order catalogs and television) and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.
(NOTE: Additional information on Macy's, Inc., including past news releases, is available at www.macysinc.com/pressroom).
SOURCE: Macy's, Inc.
Media - Jim Sluzewski, 513-579-7764
Investor - Matt Stautberg, 513-579-7780
Released January 10, 2012