Struggling American retailer Neiman Marcus is hoping to emerge from bankruptcy by raising one billion dollars via a junk dollar bond.
The ailing department store exited Chapter 11 about six months back, and hope the funds it raises will be able pay back a loan of 125 million dollars and the large interest on its remaining debt.
The NMG Holding Company, which controls the Neiman Marcus and the Bergdorf Goodman department store, issued a five-year senior secured bond last Thursday, which was assigned a Caa2 rating (very low level, ‘junk’ in finance jargon). The valuation indicates the high risk of the bond, the proceeds of which should make it possible to pay the loan and interest, with a maturity of 2025.
Neiman Marcus closed the half year as of January 30, 2021 with revenues of 1.63 billion dollars.