Nordstrom holders tender $201.48 million 7% notes in exchange offer

By Angela McDaniels

Tacoma, Wash., Jan. 2 - Nordstrom, Inc. received tenders for $201,477,000, or 57.56%, of its $350 million of 7% senior notes due 2038, according to a company news release.

A private exchange offer for the notes began Dec. 3 and expired at midnight ET on Dec. 31.

The company offered up to $300 million principal amount of newly issued 5% senior notes due Jan. 15, 2044 in exchange for the 7% notes.

Holders who tendered by the early participation date, 5 p.m. ET on Dec. 16, will receive $1,318.43 principal amount of 5% notes plus $28.81 of accrued interest per $1,000 principal amount of 7% notes. This amount includes an early participation payment of $30.00.

All but $97,000 of the tendered notes were tendered by the early participation date.

The settlement date was expected to be Jan. 2.

The exchange price was calculated at 2 p.m. ET on Dec. 16 using the bid-side yield of the 3.625% U.S. Treasury security due Aug. 15, 2043 plus 98 basis points.

The new 5% notes will form a single series with the $400 million of 5% senior notes due 2044 that the company issued on Dec. 12.

D.F. King & Co. (800 290-6427 or 212 269-5550) was the information agent.

Nordstrom is a fashion specialty retailer based in Seattle.

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