Macy’s has been struggling with the negative impact of the outbreak and in order to help sail through, the department store chain has announced securing a financing of roughly US $ 4.5 billion.
This includes US $ 3.15 billion in borrowings against assets and a previously announced US $ 1.3 billion bond offering.
This new infusion of cash will give the retailer enough liquidity to adequately prepare for store reopenings and to get back in business.
The money will be dedicated to procure new inventory and repay debt maturities in 2020 and 2021.
With a facility to request an additional US $ 750 million if the company needs it, the current agreement will reach maturity in 2024 with a short-term facility of US $ 300 million that matures in December 2020.
Notably, Macy’s stocks went up 10 per cent after the news of the new financial agreement hit the market.
The Ohio-based retail giant is planning to use some cash-on-hand and the bond offering to repay outstanding borrowings under an unsecured credit agreement of US $ 1.5 billion.
The company also announced having made amendments to the agreement in order to considerably reduce the credit commitments.
Macy’s has stores at over 750 locations worldwide and has clothing, footwear, accessories and bedding among its several product categories.
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