Macy’s Inventory gets upsized $3 billion ABL revolver maturing in 2027

By Wendy Van Sickle

Columbus, Ohio, March 3 – Macy’s, Inc. indirect subsidiary Macy’s Inventory Funding LLC amended the credit agreement governing its existing $2.94 billion asset-based credit facility to provide for a new $3 billion revolver that will mature in March 2027, according to an 8-K filing with the Securities and Exchange Commission.

The prior revolver was set to expire in May 2024.

The new ABL facility is on a first priority basis by all assets and equity of the borrower. It is guaranteed by Macy’s Inventory Holdings LLC.

The borrowing base will equal 90% of net orderly liquidation percentage of eligible inventory minus customary reserves.

Borrowings will bear interest at SOFR minus a credit adjustment spread of 10 basis points plus a margin ranging from 125 bps to 150 bps, based on utilization of the revolver.

BofA Securities, Inc., Capital One, NA, Credit Suisse Loan Funding, Fifth Third Bank, NA, PNC Capital Markets LLC and Wells Fargo Bank, NA are the joint lead arrangers and bookrunners.

Credit Suisse Loan Funding is syndication agent. Capital One, Fifth Third, PNC, U.S. Bank and Wells Fargo are co-documentation agents.

Macy’s is a department store chain based in Cincinnati.

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