New Issue: Macy’s prices $500 million eight-year notes at par to yield 5 7/8%

By Paul A. Harris

Portland, Ore., March 2 – Macy's Retail Holdings LLC priced a $500 million issue of eight-year senior notes (B1/B) at par to yield 5 7/8% in a Tuesday drive-by, according to market sources.

The deal played to $2.5 billion of demand, making way for a print that came 12.5 basis points inside of the 6% to 6¼% yield talk, a trader said. Initial guidance was in the low-to-mid 6% area.

The notes were trading at 101 bid, 101½ offered heading into the Tuesday close, the trader added.

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

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.

Issuer:	Macy’s Retail Holdings LLC
Amount:	$500 million
Maturity:	April 1, 2029
Securities:	Senior notes
Left bookrunner:	Credit Suisse Securities (USA) LLC
Joint bookrunners:	J.P. Morgan Securities LLC, BofA Securities Inc. and Goldman Sachs & Co. LLC
Co-managers:	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
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	464 bps
First call:	April 1, 2024 at 102.938
Trade date:	March 2
Settlement date:	March 17
Ratings:	Moody's: B1
	S&P: B
Distribution:	Rule 144A and Regulation S
Price talk:	6% to 6¼%
Marketing:	Drive-by

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