Struggling department store chain Macy’s Inc. has secured about $4.5 billion in financing to help it fund its operations and new inventory, resolve outstanding payments and repay debt coming due in fiscal 2020 and fiscal 2021. New York-based Macy’s said it agreed to a $3.15 billion asset-based credit facility on Monday that will mature in 2024. Last month, Macy’s said it would raise $1.3 billion through a debt offering at a 8.375% interest rate for five-year senior secured notes, exceeding the company’s initial target to sell $1.1 billion of debt. Macy’s also said it would set up a new wholly owned subsidiary for the collateral called Macy’s Propco Holdings LLC. The new asset-based credit agreement is secured by Macy’s Inventory Funding LLC, a newly formed entity that has purchased most of the company’s inventory, Macy’s said.

Source: Wall Street Journal June 08, 2020 23:37 UTC