Macy`s Credit Agreement

Concluded with new credit contracts based on loans worth $3.15 billion The modified facility offers up to $75 million in unsecured revolving loans, Macy`s said. In addition, Macy`s amended and significantly reduced the loan commitments of its existing unsecured credit agreement by $1.5 billion. The retailer stated that it intends to use the proceeds of the bond offer, as well as the available cash, to repay unpaid bonds under the existing $1.5 billion unsecured credit contract. The country`s largest department store distributor announced approximately $4.5 billion in new financing, including the previously announced $1.3 billion on 8.375 percent of priority secured bonds and a new $3.15 billion asset credit contract. New York-based Macy`s on Monday agreed to a $3.15 billion credit facility, maturing in 2024. The facility, which includes a $300 million short-term bridge facility due to expire in December, includes a feature that allows the department store operator to request up to $750 million in additional funding. “Together, the note offering and credit agreement based on Macy`s, Inc. provide approximately $4.5 billion in loans and commitments, giving us sufficient flexibility and liquidity to manage our current environment and finance our operations for the foreseeable future,” said Gennette. In addition, the macy`s ongoing commitment has allowed the company to more than double its existing revolving credit facility. The new asset-based credit agreement is secured by Macy`s Inventory Funding LLC, a newly created company that has purchased most of the company`s inventory, Macy`s said. NEW YORK- Macy`s, Inc. (NYSE:M) today announced approximately $4.5 billion in new financing, including the previously announced $1.3 billion in priority secured debt and a new $3.15 billion asset-based credit agreement. In addition, the Company has significantly modified and reduced the credit commitments of its existing $1.5 billion unsecured credit contract.

The Company intends to use the proceeds of the bond offer, as well as the available cash, to repay outstanding bonds under the existing unsecured credit contract for $1.5 billion.