Macy’s Inc. (M) raised $500 million in a bond sale to refinance debt and buy back shares.
The 10-year 3.625 percent securities yield 112.5 basis points more than similar-maturity Treasuries and are rated Baa2 by Moody’s Investors Service, according to data compiled by Bloomberg. Proceeds may be used to retire the company’s $453 million of 5.75 percent notes due in July, according to a regulatory filing.
The retailer with roots stretching back to 1858 is adding to its debt load even as fewer shoppers visit U.S. stores. Retail traffic has been negative in 10 of the last 11 months, according to ShopperTrak data compiled by Bloomberg Industries.
The Cincinnati-based company has $7 billion of bonds and loans outstanding and last tapped capital markets in September, issuing $400 million of 4.375 percent bonds maturing in September 2023. Those securities traded at 106.2 cents on the dollar to yield 3.59 percent on May 15, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
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