Report: Macy's Considering Flotation of Property-Backed Bonds in Bid to Raise Capital
It appears that Macy's (NYSE: M) is thinking about putting its considerable real estate holdings to use as the foundation for a new round of financing. According to a report in Bloomberg, citing "people with knowledge of the situation," the struggling retailer is considering the flotation of bonds backed by property and other assets it holds.
The article's sources said Macy's is exploring such possibilities in consultation with investment bank Lazard and law firm Kirkland & Ellis. They said the details of such bonds, including interest rate and maturity date, has not been settled. Also, it's possible the company will decide not to opt for such a financing mechanism.
Macy's didn't confirm the report, but it's not denying it, either. Bloomberg quoted a statement from the company saying that it's "exploring numerous options to strengthen our capital structure."
Source Fool.com
