What: Macy's announces USD 500 million refinancing plan through senior notes offering, while receiving a BBB- rating from Fitch that affirms its stable market position.

Why it is important: This financial manoeuvre reflects Macy's proactive approach to debt management, while Fitch's rating confirms the company's operational resilience as the leading U.S. department store retailer.

Macy's Inc. has announced a strategic refinancing initiative through a USD 500 million private offering of unsecured senior notes due 2033. The proceeds, combined with cash on hand, will be used to repay approximately USD 587 million in maturing senior notes and cover a USD 175 million tender offer for other debt. Fitch Ratings has assigned a BBB- rating to the proposed notes, indicating low default risk and adequate capacity for financial commitments. The rating agency's assessment reflects Macy's industry leadership, strong cash flow, and effective balance sheet management. With USD 23 billion in 2024 total revenue, Macy's maintains its position as the clear leader in the U.S. department store sector. Fitch projects the company can generate annual EBITDA of USD 1.7-1.8 billion, with margins around the mid-8 percent range in the medium term. The retailer's debt profile remains manageable, with total debt of USD 2.8 billion and no significant long-term maturities until 2027.

IADS Notes: Macy's latest refinancing initiative comes at a pivotal time in its transformation journey. As reported in March 2025, the company demonstrated resilience with Q4 2024 profits of USD 342 million, despite ongoing sales challenges. The retailer's market leadership position, with USD 23 billion in 2024 revenue, remains strong even as it implements its "Bold New Chapter" strategy. May 2025 data showed improved performance in reimagined stores, with Bloomingdale's achieving 3.8% comparable sales growth, validating the company's multi-brand approach. This debt restructuring, alongside Fitch's BBB- rating, reflects Macy's balanced approach to financial management while maintaining its position as America's largest department store chain, though the company faces ongoing pressure to optimize its operations amid changing retail dynamics.

Macy’s Inc. refinances and eases debt load