FEDERATED SELLS $450M IN NOTES
NEW YORK — Federated Department Stores has arranged for the sale of $450 million in 10 percent senior notes maturing in 2001.
The proceeds will help finance the redemption of $953.5 million in notes issued to secured creditors in the R.H. Macy & Co. Chapter 11 plan.
Federated merged with Macy’s last month.
Federated plans to redeem $381.4 million of 10.9 percent Series A notes and $572.1 million in 11.29 percent series B notes. In addition to the proceeds of the senior note sale, Federated plans to use borrowings under its bank lines and the sale of receivables-backed certificate to finance the redemption.
The new notes are scheduled to be offered for sale on Jan. 27. Goldman, Sachs & Co. is the lead underwriter. — Fairchild News Service