Ohio store chain Macy’s raises $4.5 billion to shore up financing as stores reopen



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Ohio store chain Macy’s raises $4.5 billion to shore up financing as stores reopen

Macy’s Inc., the Cincinnati, Ohio-based departmental store chain employing more than 130,000 workers, had issued a statement on Monday saying that the 91-year-old hypermarket chain operator had raised a stark sum of $4.5 billion including a $3.15 billion in new debts which the company had secured by keeping its real estate assets as collateral, as the Ohio-based American hypermarket chain operator having 775 stores across the United States has been vying to vent out a way from the pandemic-led economic slump.

Besides, NYSE-listed shares’ prices of Macy’s that as well owns the 159-year-old American luxury store chain, Bloomingdale, rocketed as much as 15 per cent in the post-market trading to $10.94 a share after rounding off the day 8.89 per cent higher to $9.55 a share.

Real estate portfolio helps Macy’s secure funds, says CEO

Meanwhile, adding that the ailing American brick-and-mortar store chain, which had been grunting for breathes for long amid a gauge of sweeping economic glooms stemmed from the pandemic outbreak, would be able to purchase new inventory, repay upcoming debts in fiscal year 2020-21, and witness sufficient flexibility and liquidity for foreseeable future followed by the securing of the new debts, Macy’s Chief Executive Jeff Gennette said in a statement, “The high quality of our real estate portfolio positioned us well to execute this offering.

” As a matter of fact, similar to tens of hundreds of US retailers, Macy’s had been met with severe misfortune from the forced store closures between March and April, while a majority of them had still been clinging on to the edge of a likely bankruptcy since the US consumers were reportedly preferring to lock themselves up instead of moving around amid a pandemic outbreak what the WHO said yesterday had been “far from over”.

However, the fresh financing from the debts and offerings including another $1.3 billion from a previously announced bond sales, alongside the existing cashes would be capitalized on paying off a $1.5 billion in debts from unsecured credit agreements.