Published on 12/7/2015 in the Prospect News Investment Grade Daily.
New Issue: Macy’s prices $500 million 3.45% five-year notes to yield Treasuries plus 180 bps
By Aleesia Forni
New York, Dec. 7 – Macy's Retail Holdings Inc. priced a $500 million offering of 3.45% five-year senior notes at 180 basis points over Treasuries on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.
Pricing came at the tight end of the 185 bps area over Treasuries guidance. Initially, talk was in the 200 bps area over Treasuries.
The issue priced at 99.899 to yield 3.471%.
The notes (Baa2/BBB+/BBB+) are guaranteed by Macy's, Inc.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, retirement of debt and repurchasing outstanding common stock.
The department store chain is based in Cincinnati.
| Issuer: | Macy’s Retail Holdings Inc.
|
| Guarantor: | Macy’s Inc.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | Jan. 15, 2021
|
| Bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Co-managers: | Fifth Third Securities, Inc., PNC Capital Markets LLC, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., MUFG, Standard Chartered Bank, Loop Capital Markets LLC, Samuel A. Ramirez & Co., Inc., Williams Capital Group, LP
|
| Coupon: | 3.45%
|
| Price: | 99.899
|
| Yield: | 3.471%
|
| Spread: | Treasuries plus 180 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Dec. 15, 2020, then callable at par
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 7
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 185 bps area, tightened from Treasuries plus 200 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
