Macy’s to redeem $406.62 million of 7.875% senior notes due 2015

By Susanna Moon

Chicago, Nov. 18 – Macy’s, Inc. said its wholly owned subsidiary, Macy’s Retail Holdings, Inc., will redeem for cash its $406.62 million principal amount outstanding of 7.875% senior notes due 2015.

The notes will be redeemed at plus a make-whole premium and accrued interest to the redemption date of Dec. 15. The notes were issued in June 2008.

The premium is estimated to be about $16 million to $18 million, according to a company press release.

“By retiring this debt early, we are taking advantage of favorable credit markets and reducing our ongoing interest expense,” Karen Hoguet, chief financial officer of Macy’s, said in the press release.

“We will be using proceeds from our recent debt issuance announced on Nov. 13 to redeem these notes in a make-whole call transaction that is NPV positive.”

Macy’s is a retailer with corporate offices in Cincinnati and New York.

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