FEDERATED LOOKS INTO REFINANCING NOTES ISSUED FOR MACY’S PURCHASE
NEW YORK — Federated Department Stores said Thursday that it is exploring the possibility of refinancing this month $953.5 million in notes issued in the acquisition of R.H. Macy & Co.
There are two note issues involved, Series A due in 1999 which will pay 10.9 percent interest, and Series B, due 2002 which will pay 11.29 percent. Both are relatively high-yield instruments but do not start to bear interest until Jan. 31 of this year. The company has the right to redeem them at par up until that date. The point of the refinancing would be to use lower-interest borrowings to pay off the notes.