Retail

Macy's announces $1 billion bond offering to repay credit facility

A view outside Macy's Herald Square during the coronavirus pandemic on May 13, 2020 in New York City.
Noam Galai | Getty Images

Macy's said on Tuesday it planned to raise $1.1 billion in a bond offering, backed by a first mortgage on some of its properties, to repay funds borrowed under a revolving credit facility.

The department store chain drew down a $1.5 billion credit facility in March as it had to temporarily close stores and limit its business to its app and website due to the Covid-19 pandemic.

A number of U.S. companies are also pledging their assets and properties to raise money and clear debt as businesses reopen after a long government-mandated lockdown.

The senior secured notes are due 2025, Macy's said.