You can now invest in a new Australian dollar, fixed coupon, credit-linked security over Macy’s Inc yielding a 7.25% per annum return.
One of America’s largest retailers and department stores, Macy’s operates approximately 725 stores across some 45 US states and the DC, as well as Guam and Puerto Rico. Its three banners Macy’s, Bloomingdale’s and Bluemercury (and accompanying e-commerce sites) sell men’s, women’s, and children’s apparel and accessories, cosmetics, and home furnishings, among other merchandise. Women’s accessories, intimate apparel, shoes, cosmetics and fragrances account for almost 40% of total revenue. Macy’s historic flagship store in Manhattan’s Herald Square has held the title of world’s largest department store since 1924. https://www.macysinc.com/
Macy’s is a global household name which is listed on the NY Stock Exchange (Ticker: M) with a market capitalisation of USD 3.0 billion.
Investment Details:
- Issuer: C2 Specialist Investment Pty Ltd
- Coupon Rate: 7.25% per annum paid quarterly
- 4-year Deferred Purchase Agreement (DPA) (maturity 28 December 2027)
- Issue Price: $100
- ABE Code: C2MF072527
- Minimum Investment: AUD10,000
- Currency: The note is denominated in AUD. All Coupons and any Final Value is delivered in Australian dollars, without exposure to the exchange rate.
Macy’s Inc Reference Asset:
- Macy’s Inc USD 4-year generic Credit Default Swap (CDS) contract
- Bloomberg Name: FD CDS USD SR 4Y D14
- Standard Reference Obligation: Macy’s Inc USD 4.50%pa bond maturing 15 December 2034 (or equivalent successor ranked pari passu)
- Bloomberg Name: M 4 ½ 12/15/34
- Bloomberg ISIN: US55616XAM92
- Bond Rating: BB+ (S&P) / Ba2 (Moody’s) / BBB- (Fitch)
- Debt Type: Senior Unsecured
Risks
The risks listed below are not all of the risks associated with the activities of an investment in a Market Linked Product. For a comprehensive description of the risks, please refer to the Key Risks section of the Product Disclosure Statement (PDS).
Credit Risk: Defaults on the underlying security may result in a loss of principal invested and/or interest due under those bonds and the underlying CDS contracts (Credit Event). In addition, investors also bear credit risk with respect to the Issuer. If the Issuer fails to perform its obligations under the DPA (or is unable to perform its obligations for any reason), there may be an adverse impact on your investment even if no Credit Event has occurred.
This risk is mitigated by:
- the size and global reach of the underlying security;
- the use of Tier One International banking partner
Bond and CDS Market Risk: A material decline in the value of Macy’s Inc’s brand in relevant market segments will erode the value of the Notes and the underlying CDS contracts
This risk is mitigated by:
- the factors referred to under ‘Credit Risk’ above;
Liquidity risk. You may not be able to realise your investment when you want to. The Issuer Buy-Back facility is at the discretion of the Issuer. Issuer Buy-Back requests are determined at the Issuer’s discretion
This risk is mitigated by:
- the Australian Bond Exchange will facilitate the secondary market to enhance liquidity
Disclaimer: The information and any advice provided in this webpage has been prepared without considering your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things. You should obtain the relevant appropriate product disclosure document for any statement for the product mentioned and consider its contents before making any decision. The C2 Market Linked Products Series 2023/6 – Macy’s Inc is subject to investment risk, including possible delays in repayment and loss of income and capital repayment. Past performance is not an indicator of future performance.