Financing Activities

9 Months Ended

Oct. 30, 2021

Debt Disclosure [Abstract]

Financing Activities

5. Financing Activities

The following table shows the detail of debt repayments:

	39 Weeks Ended
	October 30, 2021		October 31, 2020
	(millions)
Revolving credit agreement	$	335	$	1,500
9.5% Amortizing debentures due 2021		2		4
9.75% Amortizing debentures due 2021		1		2
3.875% Senior notes due 2022		450		—
2.875% Senior notes due 2023		136		—
4.375% Senior notes due 2023		49		—
3.625% Senior notes due 2024		150		—
8.375% Senior notes due 2025		1,300		—
6.65% Senior debentures due 2024		4		—
7.6% Senior debentures due 2025		19		—
	$	2,446	$	1,506

The Company is party to an asset-based credit facility (“the ABL Credit Facility”) with certain financial institutions providing for a $2,941 million revolving credit facility (the “Revolving ABL Facility”), including a swingline sub-facility and a letter of credit sub- facility. The Company may request increases in the size of the Revolving ABL Facility up to an additional aggregate principal amount of $750 million. As of October 30, 2021, the Company had $140 million of outstanding borrowings under the ABL Credit Facility.

On October 15, 2021, Macy’s Inc. redeemed the entire outstanding $294 million aggregate principal amount of its 3.875% senior notes due 2022 (the “2022 Notes”). The redemption price was equal to 100% of the outstanding principal amount of the 2022 Notes ($294 million), plus accrued and unpaid interest of $3 million.

On August 17, 2021, Macy’s Inc. redeemed the entire outstanding $1.3 billion aggregate principal amount of its 8.375% Senior Secured Notes due 2025 (the “2025 Notes”). The redemption price was equal to 100% of the outstanding principal amount of the 2025 Notes ($1.3 billion), plus accrued and unpaid interest of $19 million, plus the applicable premium due to holders of the 2025 Notes in connection with an early redemption of $138 million, plus unamortized deferred debt costs of $47 million. The Company recognized the redemption premium and unamortized deferred debt costs of $185 million as losses on early retirement of debt during the 13 weeks ending October 30, 2021.

On March 17, 2021, Macy’s Retail Holdings, LLC (“MRH”), a direct, wholly owned subsidiary of Macy’s, Inc., issued $500 million in aggregate principal amount of 5.875% senior notes due 2029 (the “2029 Notes”) in a private offering (the “Notes Offering”). The 2029 Notes mature on April 1, 2029.  The 2029 Notes are senior unsecured obligations of MRH and are unconditionally guaranteed on a senior unsecured basis by Macy’s, Inc. MRH used the net proceeds from the Notes Offering, together with cash on hand, to fund the tender offer discussed below.

On March 17, 2021, the Company completed a tender offer in which $500 million of senior notes and debentures were tendered for early settlement and purchased by MRH. The total cash cost for the tender offer was $17 million with the remainder funded through the net proceeds from the Notes Offering discussed above. The Company recognized $11 million of losses on early retirement of debt on the Consolidated Statements of Operation during the first quarter of 2021.