From: ASAP
Federated Department Stores, Inc. (NYSE:FD)(PCX:FD) announced that it has signed a definitive purchase agreement for the sale of approximately $1.2 billion of Fingerhut receivables to Atlanta-based CompuCredit Corporation.
Additionally, Federated has been informed by the Federal Trade Commission that the parties' application for an early termination of the standard 30-day waiting period under terms of the Hart- Scott-Rodino Antitrust Act has been granted. As a result, the parties expect to close the transaction on or about July 12th, subject to other customary closing conditions.
As previously announced, the transaction also includes the assumption of $450 million in receivables-backed debt that has been issued by the Fingerhut Master Trust. Additional terms of the agreement are not being disclosed, but Federated said it expects the disposition and monetization of Fingerhut's assets to generate approximately $1.1 to $1.3 billion of after-tax cash proceeds, net of one-time costs.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales from continuing operations of more than $15.6 billion. Federated currently operates more than 460 stores in 34 states, Guam and Puerto Rico, under the names of Macy's, Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus and Rich's, as well as macys.com and Bloomingdale's By Mail.
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