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An investor group of Macy’s consisting of two companies, Arkhouse Management and Brigade Capital have made an offer to take the retailer private, as per sources. The offer made was a $5.8bn buyout bid at $21/share for Macy’s stock that they do not currently own, implying a 21% premium to its closing price on Friday. Reuters notes that the group already has a big stake in Macy’s through Arkhouse-managed funds. Both Arkhouse and Brigade believe Macy’s is undervalued in public markets and thus came out with the offer, as per a WSJ report. The report also noted that an investment bank has provided a letter supporting the investor group’s ability to raise the necessary financing to get through the deal. It is to be noted that neither Arkhouse nor Brigade have executed a deal of this magnitude.
Macy’s bonds were trading weaker with its 6.7% 2028s down 2 points to 93.41, yielding 8.41%.
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