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Macy’s has come out with a takeover defense as part of its debt agreements, in a proxy fight with Arkhouse Management and Brigade Capital Management. The takeover defense involves acceleration of debt payments of over $1.5bn that may burden Macy’s finances, according to a lawsuit filed by a municipal workers fund that holds Macy’s shares. The fund alleged that Macy’s defense can force speeding up debt repayment if director nominees take over and cause a “change of control” event. After Macy’s rejected Arkhouse and Brigade’s buyout bid in January, the two investment firms increased the bid by 14%, from the earlier $5.8bn to $6.6bn.
Macy’s dollar bonds were trading weaker with its 6.7% 2034s down 1.6 points to 84.8, yielding 9%.
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