Reference no: EM133399988

Question

Kohl's Corporation issued $600 million of bonds with a 9.5% interest rate on April 27, 2020. The bonds issued were five-year bonds maturing in 2025. Kohl's will pay interest on the bonds on May 15 and November 15 of each year, beginning November 15, 2020. Bonds were sold at a price of 99.99. Kohl's said the proceeds from the bond offerings will be used to repay a portion of its borrowings, with the remainder for general corporate purposes. "The impact of and actions taken in response to COVID-19 have had a significant impact on the retail industry generally and our business, starting in the first quarter of fiscal year 2020," Kohl's wrote in the prospectus. In addition to furlough of employees, reducing marketing, technology, and operation expenses, cutting capital expenditures, Kohl's also suspended its regular quarterly cash dividend beginning in the second quarter of fiscal 2020.