Nordstrom gets tenders for 58% of 7% notes in exchange offer so far

By Angela McDaniels

Tacoma, Wash., Dec. 17 - Nordstrom, Inc. had received tenders for $201.38 million, or 57.54%, of its $350 million of 7% senior notes due 2038 as of 5 p.m. ET on Dec. 16, which was the early participation date in a private exchange offer that began on Dec. 3.

The company is offering up to $300 million principal amount of newly issued 5% senior notes due Jan. 15, 2044 in the exchange offer.

Holders who tendered by the early participation date will receive $1,318.43 principal amount of 5% notes plus $28.81 of accrued interest per $1,000 principal amount of 7% notes. This amount includes an early participation payment of $30.00.

The exchange price was calculated at 2 p.m. ET on Dec. 16 using the bid-side yield of the 3.625% U.S. Treasury security due Aug. 15, 2043 plus 98 basis points.

The exchange offer will expire at midnight ET on Dec. 31.

If holders tender an amount of 7% notes that exceeds the maximum exchange amount, Nordstrom will accept those notes for exchange on a pro rata basis.

The new 5% notes will form a single series with the $400 million of 5% senior notes due 2044 that the company issued on Dec. 12.

D.F. King & Co. (800 290-6427 or 212 269-5550) is the information agent.

Nordstrom is a fashion specialty retailer based in Seattle.

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