What: Macy’s, which came almost short of cash before the pandemic, had to raise USD $4.5 bn in 2020 to survive.

Why it is important: The excellent sales results allow the company to start recuperating and refinancing the debt, freeing up capabilities to invest in future capabilities.

Macy’s is revising its debt structure and paying back some debts on the back of strong earnings. In order to weather the Covid-19 back in 2020, the company raised USD $4.5 bn, of which USD $852 mn are expected to be refinanced next week and another USD $280 mn in debt maturing in 2032 the latest, meaning that the company will not have any significant maturity after this year.

The financial policy of the company is of course to get rid of the debt generated during the Covid-19 pandemic, and shift capital into investments able to support future growth.

Macy’s shifts focus to investments after paying down Covid debt