MENOMONEE FALLS, Wis. - Kohl’s Corporation (NYSE: KSS) announced the initiation of a private offering of $360 million in senior secured notes due 2030. The proceeds from the offering, which is contingent on market conditions and other factors, are intended for the repayment of existing debt under the company’s revolving credit facility.
The notes, secured by 11 distribution and e-commerce fulfillment centers through a new holding company, have not been registered under the Securities Act of 1933 or state securities laws. Consequently, they will be offered only to qualified institutional buyers and non-U.S. persons in compliance with regulation standards. The company maintains a current ratio of 1.08x, indicating adequate short-term liquidity position.
Kohl’s plans to utilize the net proceeds to repay its 4.25% notes due in 2025 at their maturity. This strategic financial move aims to manage the company’s debt portfolio efficiently.
The offering of these notes is restricted to certain investors and will not be available to the public or in jurisdictions where it would be unlawful. The terms of the offering are detailed in the related offering memorandum, and there is no guarantee of the offering’s completion or the conditions upon which it will be finalized.
Kohl’s, a prominent omnichannel retailer, operates over 1,100 stores across 49 states, with a significant online presence through Kohls.com and its mobile app. The company is known for providing value and convenience while maintaining a commitment to positive community impact. Trading at just 0.22x book value and a P/E ratio of 7.63, InvestingPro analysis suggests the stock is currently undervalued, with 14 additional exclusive ProTips available for subscribers. The company’s market capitalization stands at $842.72 million, with a significant free cash flow yield of 22%.
This news is based on a press release statement from Kohl’s Corporation. The forward-looking statements included in the release are subject to risks and uncertainties that could cause actual results to differ materially from those projected. For comprehensive analysis and detailed insights, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with deep-dive analysis and actionable intelligence. Kohl’s has clarified that these statements are based on current management views and assumptions and has cautioned that they may change over time.
Investors are advised to consider the inherent risks detailed in Kohl’s filings with the U.S. Securities and Exchange Commission, including its annual report for the year ended February 1, 2025. Kohl’s emphasizes that these forward-looking statements are valid only as of their initial publication date and does not commit to updating them publicly unless required by law.
In other recent news, Kohl’s Corporation has faced a series of analyst downgrades and financial challenges. Fitch Ratings downgraded Kohl’s from ’BB’ to ’BB-’ due to ongoing operational difficulties and uncertainty in stabilizing its business, with a negative outlook. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025 is projected to fall by 15% to 20%, potentially stabilizing in the mid-$800 million range if revenue improves. Barclays initiated coverage on Kohl’s with an Underweight rating and a $4 price target, citing cost pressures and competitive challenges as significant hurdles. BofA Securities also reduced its price target for Kohl’s to $7, maintaining an Underperform rating, following an executive shake-up with Michael Bender stepping in as interim CEO. UBS maintained a Sell rating with a $5 target, expressing skepticism about Kohl’s ability to curb market share losses despite new management efforts. Citi adjusted its price target to $8 from $11, noting Kohl’s underperformance in comparable sales and expressing concerns about the retailer’s ability to execute a successful turnaround. These developments highlight the various headwinds Kohl’s is navigating, including financial leverage, market dynamics, and strategic execution.
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