CINCINNATI — Good news for Macy’s, which has closed the cash tender offer by its wholly owned subsidiary, Macy’s Retail Holdings, Inc., to purchase up to $700 million in aggregate principal amount of its outstanding debt securities.
“Through this transaction and our recent debt issuance, we have successfully improved our debt maturity profile and decreased our ongoing interest expense,” said Karen M. Hoguet, Macy’s, Inc. CFO.
Macy’s expects to record additional interest expense relating to the tender offer of approximately $133 million ($83 million after income taxes) prior to Feb. 2, 2013. By completing the tender offer and related financing, Macy’s interest expense is anticipated to be reduced on a full year basis by $30 million.
Because the maximum aggregate principal amount of $700 million for the tender offer was exceeded, and the maximum aggre