Tuesday, 9 June 2020

Macy's raises $4.5 billion to shore up funds as stores reopen, shares surge



Macy’s Inc said on Monday it raised a total of $4.5 billion, including $3.15 billion in new borrowings against its real estate assets, as the department store chain tries to navigate through the fallout from the Covid-19 pandemic.

Gennette said the funding gives the retailer sufficient flexibility and liquidity to steer the business for the foreseeable future.

The company said it would be able to purchase new inventory as stores reopen and repay upcoming debts in fiscal 2020 and 2021.

Like other retailers, Macy’s has been severely impacted by store closures due to the coronavirus health crisis that forced governments to announce lockdowns to curb the spread of the infection.

The raised funding includes a previously announced $1.3 billion in a bond offering.

The funds from the offering and existing cash will be used to repay outstanding borrowings under an existing $1.5 billion unsecured credit agreement. The retailer said it has amended the $1.5 billion credit agreement to reduce the available credit commitment and modify the agreement’s covenants.

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