Macy's gets tenders for $198.55 million 6.3% notes, $480.95 million 4.8% notes

By Angela McDaniels

Tacoma, Wash., Feb. 11 - Macy's, Inc. said its wholly owned subsidiary, Macy's Retail Holdings, Inc., will repurchase $198.55 million of 6.3% senior notes due April 1, 2009 and $480.95 million of 4.8% senior notes due July 15, 2009 under a tender offer that expired on Feb. 10.

The 6.3% notes were originally issued by Federated Department Stores, Inc., and the 4.8% notes were issued by May Department Stores Co. Before the offer, there were $350 million of the 6.3% notes and $600 million of the 4.8% notes outstanding.

The payment for the notes is par plus accrued interest up to but excluding the payment date, which is Feb. 11.

The total purchase price including interest is $685.68 million, according to a company news release.

Macy's said that by using cash on hand to repurchase and retire this debt early, it expects to reduce its interest expense in 2009 by about $7 million.

Banc of America Securities LLC (888 292-0070) was the coordinating dealer manager, and Credit Suisse Securities (USA) LLC (800 820-1653) and J.P. Morgan Securities Inc. (866 834-4666) were the dealer managers. Global Bondholder Services Corp. (866 470-4200 or 212 430-3774) was the information agent and depositary.

Macy's operates department stores and has corporate offices in Cincinnati and New York.

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