Pru scores with Macy's claim. (Prudential Insurance Co. sells R.H Macy and Co. stake to Federated Department Stores)

National Underwriter Life & Health-Financial Services Edition, January, 1994 by Connolly, Jim

Federated Department Stores agreed to purchase half of Prudential Insurance Co's secured loan to R.H Macy and Co for $449.3 million. The loan is collateralized with mortgages on 70 of Macy's 100 department stores. Under the agreement, Federated can purchase the remaining 50% of the $832.5 million loan within three years. The sale of the loan gives Prudential a much-needed infusion of capital, improves its mortgage-loan portfolio and strengthens its risk-based capital ratio.

In the holiday sale of the year, Prudential agreed to sell half of its secured claim against famed retailer R.H. Macy & Co. to Federated Department Stores for $449.3 million.

Federated's shopping foray will immediately strengthen the Newark, N.J.-based insurer's commercial mortgage portfolio...

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