US department store retailer has entered into a USD$1.5bn bank credit agreement, due to mature on 20 June 2015. 

It replaces a previous $2bn facility which was set to mature on 30 August 2012.

Joint arrangers for the new agreement are J. P. Morgan, Bank of America Merrill Lynch, Credit Suisse, U.S. Bank and Wells Fargo.

"Because of our strong cash flow and improved balance sheet, we were able to enter into a bank agreement with more favourable terms and pricing. We were also able to reduce the size of our credit facility given our current and anticipated needs," said Macy's chief financial officer, Karen Hoguet.

The company now expects its interest expense in 2011 to be approximately $442m, compared to previous guidance of around $450m.