Macy’s prices $500 million in senior notes due 2033

NEW YORK - Macy’s, Inc. (NYSE:M), a retailer with a market capitalization of $3.38 billion and an InvestingPro Financial Health rating of "GOOD," announced Monday that its subsidiary, Macy’s Retail Holdings, LLC, has priced an offering of $500 million in 7.375% senior notes due 2033 at an offering price of 100% of the principal amount.

The notes offering is expected to close on July 29, 2025, subject to customary conditions. The notes will be senior unsecured obligations of the issuer and will be guaranteed on a senior unsecured basis by Macy’s, Inc.

According to the company’s statement, proceeds from the offering, along with cash on hand, will be used to fund a concurrent tender offer, redeem approximately $587 million of certain existing outstanding senior notes and debentures, and pay associated fees and expenses.

The redemption and tender offer are contingent upon completion of the notes offering, though the offering itself is not dependent on the success of either the redemption or tender offer.

The notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to non-U.S. persons under Regulation S. The securities have not been registered under the Securities Act or state securities laws and cannot be offered or sold in the United States without registration or an applicable exemption.

Macy’s, Inc. operates retail stores under the Macy’s, Bloomingdale’s, and Bluemercury brands with both digital and nationwide physical locations.

This information is based on a press release statement from the company.

In other recent news, Macy’s has launched a $175 million tender offer for its outstanding notes and debentures, targeting four series of notes with varying priority levels. This move is part of a broader financial strategy, as the company also announced a $500 million offering in senior notes due 2033, intended to fund the tender offer and redeem approximately $587 million of existing senior notes. UBS has reiterated its Sell rating on Macy’s stock, citing concerns over market share and projecting a negative 13% earnings per share growth rate from 2024 to 2029. Conversely, TD Cowen raised its price target for Macy’s shares to $13, following first-quarter earnings that exceeded expectations with an EPS of $0.16, surpassing consensus estimates by about 7%. Despite this positive performance, Macy’s has issued a conservative earnings guidance for fiscal year 2025, reflecting broader economic uncertainties. Citi also adjusted Macy’s price target to $12, noting improved sales trends during the first quarter and into May. Analysts from both TD Cowen and Citi recognize the challenges Macy’s faces but acknowledge the company’s strategic efforts to navigate the current retail landscape. These developments highlight the mixed analyst sentiment surrounding Macy’s financial outlook and competitive position.

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