Macy's Announces Pricing Of Its $1.3B Debt Offering As Shares Jump 26%

Macy's Inc. M on Wednesday announced it has priced a $1.3 billion debt offering at an interest rate of 8.375%.

The amount to be raised is $200 million above what the retailer stated earlier on Tuesday. Macy's said the offering for the 5-year bonds is expected to close on June 8.

The Cincinnati-based company said the funds raised would be used to repay all outstanding amounts under an existing revolving credit facility.

JPMorgan Chase & Co. JPM, Goldman Sachs Group Inc. GS, Bank of America Corp. BAC, and Credit Suisse Group AG CS acted as book runners for the offering, according to the Wall Street Journal.

Retailers Kohl's Corporation KSS and Nordstrom Inc. JWN also raised funds in bond offerings in recent week.

Macy's stock posted its largest percentage gain in a day on record on Wednesday, as earlier noted by MarketWatch.

The jump came as interest in the debt offering showed that investors are still optimistic about a recovery in the retail sector. Macy's has been among the retailers that struggled to return profit even ahead of the novel coronavirus (COVID-19) pandemic.

Macy's shares closed 19.6% higher at $7.38 on Wednesday and added another 7% in the after-hours session at $7.90.