FEDERATED AIMS TO SELL $500M IN NOTES
CINCINNATI — Federated Department Stores Inc. has filed a registration statement for the sale of $500 million in unsecured notes to help refinance $953.5 million in notes issued to secured creditors in the Chapter 11 plan of R.H. Macy & Co.
Federated, which acquired Macy’s last month, said the proceeds of the issue together with bank borrowings will be used to prepay $381.4 million in 10.9 percent series A notes due in 1999 and $572.1 million in 11.29 percent series B notes due June 30, 2002. The series A and B notes do not begin to bear interest until Jan. 31, and Federated has the right to redeem them at par until that date.
Declining to estimate how much interest Federated would save through the refinancing, a Federated spokeswoman said, “It definitely will save money.”