Macy’s announces early redemption of all 8 3/8% notes due 2025

Chicago, Aug. 3 – Macy’s Inc. announced the early redemption of all $1.3 billion principal amount of its 8 3/8% senior secured notes due 2025, according to a press release.

The company is redeeming the notes at par plus the applicable premium due, plus interest, to the redemption date on Aug. 17.

The company expects to record a pre-tax charge related to the redemption premium and other costs of $185 million in its fiscal third quarter.

Annually, the company expects to realize interest savings of about $120 million.

Notes are to be surrendered to U.S. Bank NA in exchange for payment.

The company is aiming to lower its target leverage ratio and achieve an investment-grade profile by the end of the year.

Macy’s is a department store chain based in Cincinnati.

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