Macy’s driving by with $500 million eight-year notes; initial talk in low-to-mid 6% area

By Paul A. Harris

Portland, Ore., March 2 – Macy's Retail Holdings LLC plans to price a $500 million offering of eight-year senior notes (B) in a Tuesday drive-by following a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the low-to-mid 6% area.

Credit Suisse Securities (USA) LLC is the left lead bookrunner. J.P. Morgan Securities LLC, BofA Securities Inc. and Goldman Sachs & Co. LLC are the joint bookrunners.

Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., Fifth Third Securities Inc., MUFG, PNC Capital Markets LLC, Citigroup Global Markets Inc., Loop Capital Markets LLC, Siewel and Ramirez are the co-managers.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon.

The New York-based department store chain operator plans to use the proceeds plus cash on hand to fund concurrent tender offers, with any remaining proceeds to be used for general corporate purposes.

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