Macy's announces $1 billion bond offering to repay credit facility

FILE PHOTO: R.H. Macy and Co.flagship department store is seen in midtown New York, New York, U.S. November 11, 2015. REUTERS/Brendan McDermid

(Reuters) - Macy's Inc M.N said on Tuesday it planned to raise $1.1 billion in a bond offering, backed by a first mortgage on some of its properties, to repay funds borrowed under a revolving credit facility.

The department store chain drew down a $1.5 billion credit facility in March as it had to temporarily close stores and limit its business to its app and website due to the COVID-19 pandemic.

A number of U.S. companies are also pledging their assets and properties to raise money and clear debt as businesses reopen after a long government mandated lockdown.

The senior secured notes are due 2025, Macy’s said.

Reporting by Nivedita Balu in Bengaluru; Editing by Anil D’Silva