GAP FILES TO SELL $500M IN NOTES
Byline: Kristin Young
LOS ANGELES — Gap Inc. filed a shelf registration with the Securities Exchange Commission on Friday to sell a total of $500 million in debt securities from time to time.
The San Francisco-based retailer filed to sell $250 million in debt securities and is carrying an additional $250 million that was registered but unsold. Funds will be for general working capital, including store and distribution center expansions and investing in Gap brands.
“This is part of our ongoing capital structure management,” said Alan Marks, a Gap spokesman. “The shelf filing is just a notice so to speak. There are no specific plans to issue the bonds.”
Marks said Gap has two notes totaling $900 million that will mature this fall; an 18-month note for $250 million and a 12-month note for $650 million.
In a shelf registration, a company can sell securities periodically in one or more offerings in amounts, prices and terms to be determined at the time of sale, according to the SEC.