Macy’s to offer $500 million in senior notes due 2033

NEW YORK - Macy’s, Inc. (NYSE:M), the $3.4 billion market cap retailer currently trading near its InvestingPro Fair Value, announced Monday that its subsidiary, Macy’s Retail Holdings, LLC, plans to offer $500 million in senior notes due 2033 in a private offering to qualified institutional buyers.

The company intends to use the proceeds, along with cash on hand, to fund a concurrent tender offer, redeem approximately $587 million of certain existing senior notes and debentures, and pay associated fees and expenses. The refinancing comes as Macy’s maintains a healthy liquidity position with a current ratio of 1.43, while managing total debt of $5.66 billion.

The senior notes will be unsecured obligations of Macy’s Retail Holdings and will be guaranteed by Macy’s, Inc. The offering is subject to market and other customary conditions.

While the redemption and tender offer are contingent on the completion of the notes offering, the notes 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 any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption.

Macy’s operates nationwide through its namesake stores as well as Bloomingdale’s and Bluemercury locations.

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

In other recent news, Macy’s reported first-quarter earnings per share (EPS) of $0.16, surpassing consensus estimates of $0.15. Despite this positive performance, the company has provided a more conservative earnings guidance for fiscal year 2025, with a midpoint of $1.80 per share, down from the previous forecast of $2.15. UBS maintained its Sell rating on Macy’s, citing ongoing market share challenges, while TD Cowen raised its price target to $13, maintaining a Hold rating due to favorable quarterly results. Citi also increased its price target to $12, noting improved sales trends and consumer demand. Jefferies adjusted its price target to $14.50, keeping a Buy rating, and highlighted Macy’s strategic and real estate adjustments. JPMorgan lowered its price target to $12, maintaining a Neutral rating, and emphasized the company’s revised full-year EPS outlook. These developments reflect a mixed outlook for Macy’s, with analysts noting both positive sales trends and ongoing challenges in the retail sector.

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