| On May 10, 2013, Macy's, Inc. (“Macy's”) and its wholly owned subsidiary, Macy's Retail Holdings, Inc. (“MRHI”), entered into a Credit Agreement dated as of May 10, 2013 (the “Credit Agreement”) among Macy's, MRHI, the lenders party thereto and JPMorgan Chase Bank, N.A., as an administrative agent and the paying agent, and Bank of America, N.A., as an administrative agent, and J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith, Incorporated, Credit Suisse Securities (USA) LLC, U.S. Bank National Association and Wells Fargo Securities, LLC, as joint bookrunners and joint lead arrangers. The Credit Agreement provides MRHI, as borrower, with unsecured revolving credit in an aggregate amount not to exceed $1.5 billion outstanding at any time, including a $1.0 billion sublimit for the issuance of letters of credit and related accommodations. The revolving credit commitments provided for in the Credit Agreement are scheduled to expire on May 10, 2018, subject to up to two one-year extensions that may be requested by MRHI and agreed to by the lenders. The Credit Agreement replaces the Credit Agreement dated as of June 20, 2011, which provided unsecured revolving credit to the Company in an aggregate amount not to exceed $1.5 billion outstanding at any time and was scheduled to expire on June 20, 2015. Under the Credit Agreement, the Company will be required to maintain (1) a ratio of consolidated EBITDA to consolidated net interest expense of no less than 3.25 to 1.00 and (2) a ratio of total indebtedness to consolidated EBITDA of no more than 3.75 to 1.00, in each case as calculated at the end of each fiscal quarter for the four fiscal quarters then most recently ended in accordance with the provisions of the Credit Agreement. The Credit Agreement also contains covenants that provide for, among other things, limitations on subsidiary indebtedness, liens, and sale/leaseback transactions. In connection with the execution of the Credit Agreement, Macy's, MRHI, and JPMorgan Chase Bank, N.A., as paying agent, entered into a Guarantee Agreement on May 10, 2013 (the “Guarantee Agreement”) whereby Macy's agreed to guarantee the obligations of MRHI under the Credit Agreement. The foregoing disclosure is qualified in its entirety by reference to the Credit Agreement and the Guarantee Agreement, which are attached hereto as Exhibits 10.1 and 10.2, respectively, and are incorporated herein by reference. |
| 10.01 | Credit Agreement, dated as of May 10, 2013, among Macy's, Inc., Macy's Retail Holdings, Inc., the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and paying agent, and Bank of America, N.A., as administrative agent. |