Bonds
Macy’s Bonds Also Slide After Board Terminates Buyout Talks
- Notes linked to change-of-control provision fall 2 cents-plus
- Company’s board was not satisfied with financing, bid price
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Macy’s Inc. bonds fell alongside the department store chain’s biggest stock plunge in four years, after the company said it is ending discussions with Arkhouse Management Co. and Brigade Capital Management on a potential buyout.
The company’s 4.5% note due 2034 declined 5.8 cents to 82 cents on the dollar and its 6.125% bond due 2032 fell 2 cents to 94.5 cents, according to pricing source Trace as of 11:29 a.m. Monday in New York. Both notes, as well as some others, carry a change of control provision that would require repayment at 101 cents on the dollar in the event Macy’s is acquired, according to data compiled by Bloomberg.