Quarterly report pursuant to Section 13 or 15(d)

Financing Activities

v3.21.2
Financing Activities
6 Months Ended
Jul. 31, 2021
Debt Disclosure [Abstract]  
Financing Activities

5.

Financing Activities

The following table shows the detail of debt repayments:

 

 

 

26 Weeks Ended

 

 

 

July 31, 2021

 

 

August 1, 2020

 

 

 

(millions)

 

Revolving credit agreement

 

$

 

 

$

1,500

 

9.5% Amortizing debentures due 2021

 

 

2

 

 

 

2

 

9.75% Amortizing debentures due 2021

 

 

1

 

 

 

1

 

3.875% Senior notes due 2022

 

 

156

 

 

 

 

2.875% Senior notes due 2023

 

 

136

 

 

 

 

4.375% Senior notes due 2023

 

 

49

 

 

 

 

3.625% Senior notes due 2024

 

 

150

 

 

 

 

6.65% Senior debentures due 2024

 

 

4

 

 

 

 

7.6% Senior debentures due 2025

 

 

19

 

 

 

 

 

 

$

517

 

 

$

1,503

 

 

On August 17, 2021, subsequent to the end of the second quarter of 2021, Macy’s Inc. redeemed the entire outstanding $1.3 billion aggregate principal amount of its 8.375% Senior Secured Notes due 2025 (the “2025 Notes”). The redemption price was equal to 100% of the principal amount of the 2025 Notes ($1.3 billion), plus accrued and unpaid interest of $19 million, plus the applicable premium due to holders of the 2025 Notes in connection with an early redemption of $138 million, plus unamortized deferred debt costs of $47 million. The total pre-tax charge of $185 million will be recorded in the 13 weeks ending October 30, 2021. The $1.3 billion principal amount of 2025 Notes were classified as short-term debt as of July 31, 2021.

On March 17, 2021, Macy’s Retail Holdings, LLC (“MRH”), a direct, wholly owned subsidiary of Macy’s, Inc., completed an offering of $500 million in aggregate principal amount of 5.875% senior notes due 2029 (the “2029 Notes”) in a private offering (the “Notes Offering”). The 2029 Notes mature on April 1, 2029.  The 2029 Notes are senior unsecured obligations of MRH and are unconditionally guaranteed on a senior unsecured basis by Macy’s, Inc.  MRH used the net proceeds from the Notes Offering, together with cash on hand, to fund the tender offer discussed below.

 

On March 17, 2021, the Company completed a tender offer in which $500 million of senior notes and debentures were tendered for early settlement and purchased by MRH. The total cash cost for the tender offer was $17 million with the remainder funded through the net proceeds from the private offering discussed above. The Company recognized $11 million of loss related to the early retirement of debt on the Consolidated Statements of Operation during the first quarter of 2021.