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MACY'S ANNOUNCES AGREEMENT WITH SENIOR LENDERS OF TECHNICAL AMENDMENTS

MACY'S ANNOUNCES AGREEMENT WITH SENIOR LENDERS OF TECHNICAL AMENDMENTS
    NEW YORK, Dec. 11 /PRNewswire/ -- R.H. Macy & Co., Inc. announced today that it has reached agreement with its senior lenders on technical amendments to the company's bank agreement.
    The new amendments:
    -- Raise to $150 million from $1 million the company's requirement to reduce its revolver borrowings for a period of 30 consecutive days between Dec. 16, 1991 and Feb. 15, 1992.  Within that 30-day period, the company must also reduce its borrowings to $75 million for a 7-day period.
    -- Amend EBIT-D to cash interest coverage ratios for three fiscal quarters.
    -- Permit the company to set aside certain reserves, including a reserve for the announced divisional realignment in the Spring.
    "We are pleased that our lenders continue to provide us with the support and flexibility necessary to keep growing our business," said Edward S. Finkelstein, Macy's chairman and chief executive officer. "Clearly, it reflects their recognition of the strides we have taken to reduce debt and interest expense and to strengthen our competitive position.  We have achieved five straight months of increased sales, and we continue to make gains in market share.
    "There is no question that this has been a difficult economic environment for retailers, but I hope this agreement will stop the senseless rumors that seem to bubble up each year at this time," Finkelstein said.  "Last December, with the same rumors swirling around, we said we would reduce debt significantly in the coming year -- and we did.  We have a plan to reduce debt even further in 1992, as well, though it would be inappropriate to discuss specifics at this time."
    Following a principal payment of $35 million on Dec. 16, Macy's bank term loan will stand at $170 million, down from $1 billion in 1988.
    -0-        12/11/91
    /CONTACT:  James Fingeroth or Michael Freitag of Kekst and Company, 212-593-2655, for Macy's/ CO:  R.H. Macy & Co., Inc. ST:  New York IN:  REA SU:  FNC SM -- NY063 -- 2339 12/11/91 14:43 EST
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Publication:PR Newswire
Date:Dec 11, 1991
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