Nordstrom, Inc. Announces Closing of $675 Million of Senior Unsecured Notes
Nordstrom, Inc. (NYSE: JWN) has closed its offering of $250 million 2.300% Senior Notes due 2024 and $425 million 4.250% Senior Notes due 2031. The proceeds will be used to redeem $600 million of 8.750% Senior Secured Notes due 2025, which were issued during the COVID-19 pandemic. This move will reduce annual interest expenses by about $30 million starting in Q2 2021. Additionally, the company aims to lower its leverage ratio to approximately 3x by the end of 2021 and 2.5x by the end of 2022, emphasizing a strengthened financial position and recovery from pandemic impacts.
- Reduction of annual interest expense by approximately $30 million starting Q2 2021.
- Company aims to lower leverage ratio to approximately 3x by end of 2021 and 2.5x by end of 2022.
- Bond portfolio will be entirely unsecured, enhancing financial flexibility.
- Interest expense for Q1 2021 will include approximately $90 million in charges related to the 2025 Notes.
SEATTLE, April 8, 2021 /PRNewswire/ -- Nordstrom, Inc. (NYSE: JWN) announced today the closing on April 8, 2021 of its previously announced offering of
The Company will use the net proceeds from the sale of the Notes, together with cash on hand, to redeem in full the
As a result of this redemption, the Company's bond portfolio once again will be entirely unsecured, and the real estate used to secure the 2025 Notes will be fully unencumbered.
Together, these transactions will reduce annualized interest expense by approximately
The closing of the offering will also create flexibility for additional de-leveraging with the 2024 Notes, which includes a par-call feature beginning in April 2022. The Company remains on track to reduce its leverage ratio to approximately 3x by the end of 2021 and 2.5x by the end of 2022.
"This pandemic presented us with unprecedented challenges. After the health and safety of our employees and customers, our priority has been to ensure the long-term financial success of the company," said Anne Bramman, chief financial officer of Nordstrom, Inc. "We're pleased with the progress our business has made in recovering from the impacts of COVID-19 and are optimistic about our future growth opportunities. With the completion of this refinancing, we are further strengthening our financial position. This is an important milestone in our return to targeted leverage ratios and an investment grade capital structure."
The Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state or other securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. In connection with the offering of the Notes, the Company agreed to file a registration statement with respect to an offer to exchange the Notes for substantially similar notes that are registered under the Securities Act within 180 days after the closing of the offering or, in certain circumstances, register the resale of the Notes.
This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
ABOUT NORDSTROM
Nordstrom, Inc. is a leading fashion retailer based in the U.S. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 358 stores in the U.S. and Canada, including 100 Nordstrom stores; 249 Nordstrom Rack stores; two clearance stores; and seven Nordstrom Local service hubs. Additionally, customers are served online through Nordstrom.com, Nordstrom.ca, Nordstromrack.com, HauteLook.com and TrunkClub.com. Nordstrom, Inc.'s common stock is publicly traded on the NYSE under the symbol JWN.
Certain statements in this press release contain or may suggest "forward-looking" information (as defined in the Private Securities Litigation Reform Act of 1995) that involves risks and uncertainties that could cause results to be materially different from expectations. The words "will," "may," "intends" and similar expressions identify certain of these forward-looking statements. All statements contained in this press release that address such future events or expectations are forward-looking statements. Important factors that could cause actual results to differ materially from these forward-looking statements are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended January 30, 2021. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.
MEDIA CONTACT: | Gigi Ganatra Duff | |
Nordstrom, Inc. | ||
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SOURCE Nordstrom, Inc.
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