The reduction in market expectations for growth rates causes a situation where in the sector of highly reliable Eurobonds yield of about 6% can provide paper only with a relatively long maturity. For example, the release of the largest US retailer clothing Macy’s, Inc. maturing in 2034. Eurobond in the amount of 550 million dollars (in circulation there are securities for 367 million dollars) was placed in November 2014. The issue provides one call option at par for six months before maturity. The minimum lot for M 4 ½ 12/15/34 is 2 thousand dollars. Note that the paper is serviced by NSD.
Founded in the mid-19th century by Macy’s, Inc. owns universal stores that sell clothing and accessories in the United States. The corporation also manages subsidiary companies engaged in address distribution of catalogs and electronic commerce. Macy’s Network, Inc. includes 840 department stores located in 45 states. As of February 2019, the company employed 130 thousand people.
In 2018, the issuer's revenue and EBITDA amounted to $ 24.8 and $ 2.8 billion, respectively, net profit was fixed at $ 1.5 billion. Moody’s keeps a “stable” outlook on the rating change (Baa3) of the company, S & P and Fitch agencies - “negative” (BBB- and BBB, respectively). Shares of Macy’s, Inc. traded on the NYSE, the company's current market capitalization is 7.2 billion dollars.
One of the events of the beginning of the year for the Eurobond sector was the return to trading mode of three issues of RUSAL after the removal of sanctions from the issuer by the U.S. Department of the Treasury. Since the beginning of February, papers have been actively reducing their premiums in terms of yield to the sovereign curve, including against the backdrop of reporting for 2018, which showed weak damage from the sanctions imposed.
However, due to the fact that the issuer is still without ratings, the premiums are still extended relative to their "pre-sanction" levels. So, for the issue with redemption on February 2, 2022, the current spread in yield to the issue of "Russia" with redemption on April 4, 2022 reaches 220 bp, whereas at the beginning of April last year - on the very eve of the appearance of sanctions news regarding the company - it was about 190 bp. March 10, the company said it expects the renewal of credit ratings within three to four weeks.
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