Kohl’s tenders for $300 million of six note series until month-end

By Susanna Moon

Chicago, April 2 – Kohl’s Corp. said it is tendering for up to $300 million principal amount of its 7.25% debentures due 2029, 6.875% notes due 2037, 6% debentures due 2033, 4% notes due 2021, 4.75% notes due 2023 and 3.25% notes due 2023.

Pricing will be set using a reference security plus a fixed spread, with the notes listed in order of priority acceptance levels as follows:

• $99.4 million of 7.25% debentures due 2029 with pricing to be set using the 2.75% U.S. Treasury note due Feb. 15, 2028 plus 230 basis points;

• $149,998,000 of 6.875% notes due 2037 with pricing based on the 2.75% U.S. Treasury note due Nov. 15, 2047 plus 280 bps;

• $166,018,000 of 6% debentures due 2033 with pricing based on the 2.75% U.S. Treasury note due Feb. 15, 2028 plus 235 bps;

• $650 million of 4% notes due 2021 with pricing based on the 2.375% U.S. Treasury note due March 15, 2021 plus 55 bps;

• $300 million of 4.75% notes due 2023 with pricing based on the 2.5% U.S. Treasury note due March 31, 2023 plus 75 bps; and

• $350 million of 3.25% notes due 2023 with pricing based on the 2.5% U.S. Treasury note due March 31, 2023 plus 70 bps.

The total purchase price will include an early tender premium of $50.00 per $1,000 principal amount of notes tendered by the early deadline of 5 p.m. ET on April 13.

The tender offer will remain open until 11:59 p.m. ET on April 27.

The offer is not conditioned upon any minimum amount of notes being tendered.

Kohl’s reserves the right to increase the offer cap, according to a company announcement.

Notes tendered before the early deadline will be given priority over notes tendered afterward, regardless of priority level.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) is the lead dealer manager. J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and Wells Fargo Securities, LLC are the co-dealer managers. D.F. King & Co., Inc. (877 478-5044 or kss@dfking.com) is the tender agent and information agent.

Kohl’s is a department store chain based in Menomonee Falls, Wis.

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