By Yasin Ebrahim
Investing.com - Macy's (NYSE:M) jumped in after-hours trade Monday, after the department store retailer said it had raised about $4.5 billion of new financing in a bid to shore up its balance sheet.
The company said it intended to use the proceeds to pay down debt.
"Together, the notes offering and asset-based credit agreement provide Macy’s, Inc. with approximately $4.5 billion of borrowings and commitments, giving us sufficient flexibility and liquidity to navigate our current environment and fund our business for the foreseeable future,” said Jeff Gennette, chairman and chief executive officer of Macy’s.
The $4.5 billion of new financing included the previously announced $1.3 billion of 8.375% senior secured notes, as well as a new $3.15 billion asset-based credit agreement.
The company also amended and reduced the credit commitments of its existing $1.5 billion unsecured credit agreement.