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Macy's Announces Pricing Of Its $1.3B Debt Offering As Shares Jump 26%

Macy's Announces Pricing Of Its $1.3B Debt Offering As Shares Jump 26%

Macy's Inc. (NYSE: M) on Wednesday announced it has priced a $1.3 billion debt offering at an interest rate of 8.375%.

The amount to be raised is $200 million above what the retailer stated earlier on Tuesday. Macy's said the offering for the 5-year bonds is expected to close on June 8.

The Cincinnati-based company said the funds raised would be used to repay all outstanding amounts under an existing revolving credit facility.

JPMorgan Chase & Co. (NYSE: JPM), Goldman Sachs Group Inc. (NYSE: GS), Bank of America Corp. (NYSE: BAC), and Credit Suisse Group AG (NYSE: CS) acted as book runners for the offering, according to the Wall Street Journal.

Retailers Kohl's Corporation (NYSE: KSS) and Nordstrom Inc. (NYSE: JWN) also raised funds in bond offerings in recent week.

Macy's stock posted its largest percentage gain in a day on record on Wednesday, as earlier noted by MarketWatch.

The jump came as interest in the debt offering showed that investors are still optimistic about a recovery in the retail sector. Macy's has been among the retailers that struggled to return profit even ahead of the novel coronavirus (COVID-19) pandemic.

Macy's shares closed 19.6% higher at $7.38 on Wednesday and added another 7% in the after-hours session at $7.90.


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