May Prices $2B Private Placement

ST. LOUIS-The May Department Stores has priced its private placement offering of $2.2 billion of securities in the long-term public debt markets. The proceeds will be used to partially fund the locally based company’s $3.2-billion acquisition of the Marshall Field’s department store group and nine Mervyn’s stores from Target Corp. The debt ranges from three to 30 years as follows: $400 million of 3.95% notes due in 2007; $600 million of 4.8% notes due in 2009; $500 million of 5.75% notes due in 2014; $300 million of 6.65% notes debentures in 2024; $400 million of 6.7% notes debentures in 2034. Proceeds from the offering will be available July 20.May Department Stores operates in 46 states, the District of Columbia and Puerto Rico. The company currently operates 438 department stores under the names of Lord & Taylor, Famous-Barr, Filene’s, Foley’s, Hecht’s, Kaufmann’s, LS Ayres, Meier & Frank, Robinsons-May, Strawbridge’s and the Jones Store. Additionally, it operates 219 David’s Bridal stores, 453 After Hours Formalwear stores and 10 Priscilla of Boston stores in its Bridal Group.The Marshall Field’s acquisition will strengthen May’s presence in the Midwest, giving it 62 Marshall Field’s stores, mostly in Chicago, Detroit and the Twin Cities. The acquisition will give May some 500 department stores.