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The Saks Debt Scaries

A close look at whether Saks Global, several months after acquiring Neiman Marcus Group for $2.7 billion, can make its initial $120 million-ish interest payment to bondholders at the end of June.

Marc Metrick
There have been a fair amount of recent Saks updates, aside from the questions about the forthcoming first interest payment, that are probably influencing its bonds to continue to trade lower. Photo: Bernard Weil/Toronto Star/Getty Images
William D. Cohan
April 27, 2025

The plot continues to thicken at Saks Global. At last check, the $2.2 billion publicly traded Saks senior secured bond, due 2029, which pays 11 percent interest, is now trading at 67 cents on the dollar and yielding 22 percent. This is not a good situation for bondholders, who have watched the bond lose a third of its value in the four months since it was issued last December as part of Saks’ $2.7 billion acquisition of Neiman Marcus Group. Nor is it good for the company itself—which, of course, has a roughly $120 million interest payment due on the bonds at the end of June.