Macy's moves to cut costs of borrowing.

Daily News Record, December, 1989

MACY'S MOVES TO CUT COSTS OF BORROWING

NEW YORK (FNS) - R.H. Macy & Co. has expanded its consumer receivables financing program by $500 million to a total of $900 million.

The program is designed to reduce Macy's financing costs through issuance of commercial paper collateralized by receivables with letters of credit guaranteeing a portion of the receivables.

With the collateral and letters of credit, Macy's commercial paper is rated A1 Standard & Poor's and P1 by Moody's. This minimizes the cost of the borrowing.

Myron E. Ullman, 3d, executive vice-president of Macy's estimates that the new financing program will save about $18 million in annual borrowing costs.