Macy’s Reduces and Extends Credit Facility to Strengthen Liquidity Position

Macy’s, Inc. has amended and extended its asset-based credit facility, securing $2.1 billion in committed liquidity through April 2030. The revised agreement, executed on April 9, 2025, replaces the company’s prior $3.0 billion facility set to expire in March 2027.

The new arrangement reduces borrowing capacity but offers lower fees and more favorable terms. Macy’s Inventory Funding LLC remains the borrower, with Macy’s Inventory Holdings LLC as guarantor. As of the end of fiscal 2024, the facility was undrawn, and Macy’s reported $1.3 billion in cash and cash equivalents.

Key terms of the amended credit facility include:

Total committed borrowing: $2.1 billion

Maturity: April 2030

Interest rates: Based on adjusted SOFR +1.25% to 1.50% or base rate +0.25% to 0.50%, depending on utilization

Optional increase: Up to $1.75 billion in additional commitments

Collateral: First priority lien on inventory and equity of the ABL Borrower

Covenants: Includes financial maintenance tests and restrictions on debt, dividends, and asset sales

This move enhances Macy’s flexibility by locking in lower borrowing costs while maintaining access to a sizable credit reserve.