ITEM 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
On April 8, 2021, Nordstrom, Inc. (the "Company") issued $250 million aggregate
principal amount of 2.300% Senior Notes due 2024 (the "2024 Notes") and
$425 million aggregate principal amount of 4.250% Senior Notes due 2031 (the
"2031 Notes", and together with the 2024 Notes, the "Notes") in a private
offering to qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended (the "Securities Act"), or to non-U.S.
investors in reliance on Regulation S under the Securities Act. The Notes were
issued under an Indenture (the "Indenture") dated as of December 3, 2007 between
the Company and Wells Fargo Bank, National Association, as trustee.
The 2024 Notes bear interest at a fixed rate of 2.300% per year, payable
semi-annually in arrears on April 8 and October 8 of each year, beginning on
October 8, 2021. The 2031 Notes bear interest at a fixed rate of 4.250% per
year, payable semi-annually in arrears on February 1 and August 1 of each year,
beginning on August 1, 2021. The 2024 Notes and the 2031 Notes are senior,
unsecured obligations of the Company, and will mature on April 8, 2024 and
August 1, 2031, respectively, unless earlier repurchased or redeemed in
accordance with their terms. The Company may redeem the Notes, at any time in
whole or from time to time in part, at its option, at the applicable redemption
prices set forth in the Notes. Additionally, upon the occurrence of certain
change of control triggering events, the Company will be required, unless it has
exercised its right to redeem such series of Notes, to offer to purchase the
Notes at a purchase price equal to 101% of the principal amount, plus accrued
and unpaid interest, if any, to, but not including, the purchase date. The
Indenture sets forth certain events of default after which the Notes may be
declared immediately due and payable and sets forth certain types of bankruptcy
or insolvency events of default involving the Company. A copy of the Indenture
was attached as Exhibit 4.3 to the Company's Annual Report on Form 10-K for
fiscal year 2020.
Item 2.04. Triggering Event That Accelerates or Increases a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement
On March 24, 2021, the Company issued a conditional notice of redemption to
redeem in full the outstanding $600 million aggregate principal amount of its
outstanding 8.750% Senior Secured Notes due 2025 (the "2025 Notes"). The
redemption is expected to occur on April 24, 2021 (the "Redemption Date"),
subject to satisfaction or waiver by the Company of a condition that it have
completed one or more debt financings on terms and conditions satisfactory to
the Company, in its sole discretion, generating sufficient net cash proceeds,
together with cash on hand, to fund the aggregate redemption price on the
redemption date. The 2025 Notes were issued under an Indenture, dated as of
April 16, 2020, among the Company, Wells Fargo Bank, National Association, as
Trustee (as defined therein) and the guarantors party thereto (the "2025 Notes
Indenture"). The redemption price for the 2025 Notes is equal to 100% of the
principal amount plus accrued and unpaid interest to, but not including the
Redemption Date estimated to be approximately $23 million, plus a "make-whole"
premium estimated to be approximately $78 million.
Upon the issuance of the Notes on April 8, 2021, the condition to the redemption
of the 2025 Notes has been satisfied.
ITEM 8.01. Other Events
On April 8, 2021, the Company announced the closing of its offerings of the
Notes in a press release, a copy of which is attached hereto as Exhibit 99.1 and
is incorporated herein by reference.
ITEM 9.01. Financial Statements and Exhibits
99.1 Press release entitled "Nordstrom, Inc. Announces Closing of $675
Million of Senior Unsecured Notes" issued by Nordstrom, Inc. on April 8,
2021.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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