Investing.com -- Macy's entered into a confidentially agreement with Arkhouse and Brigade Capital, allowing the two entities to conduct due diligence needed to secure the funds needed to proceed with their improved $6.6 billion offer to take the U.S. department store chain private, Reuters reported Tuesday, citing unnamed sources.
Macy’s Inc (NYSE:M) was up 2% in recent trading following the news.
The due diligence is expected to help Arkhouse and Brigade secure debt commitments to finance the deal, the sources told Reuters. The two investment firms have secured letters secured from investment banks including Jefferies Financial Group that indicate that a debt deal can be put together to take Macy's private, the report said.
Earlier this month, Arkhouse Management and Brigade Capital Management upped their offer
to $24 each to buy remaining shares that they don't already own, but Macy's had rejected the offer, citing a "lack of compelling value."
Arkhouse and Brigade declined to comment, Reuters said.