Macy's Inc. said on Tuesday it planned to raise $1.1 billion in a bond offering, backed by a first mortgage on some of its properties, to repay funds borrowed under a revolving credit facility.

The department store chain drew down a $1.5 billion credit facility in March as it had to temporarily close stores and limit its business to its app and website due to the COVID-19 pandemic.

A number of U.S. companies are also pledging their assets and properties to raise money and clear debt as businesses reopen after a long government mandated lockdown.

The senior secured notes are due 2025, Macy's said. 

Macy's last week said it could rack up operating losses of up to $1.11 billion in the first quarter, as the department store operator was forced to shut stores due to lockdowns aimed at curbing the spread of the new coronavirus.

"We anticipate that our sales recovery will be gradual and that for a period of time, we will be a smaller company," Chief Executive Jeff Gennette said on a call with investors.

The global health crisis has forced brick-and-mortar retailers to tap credit lines, lay off employees and suspend dividends and buybacks in a bid to stay afloat amid store closures.

Just this month, several retailers, including J Crew, J.C. Penney and Neiman Marcus Group, filed for bankruptcy after failing to cope with market uncertainties and mounting debt.

Macy's, which shut all of its 775 stores on March 18, hired investment bank Lazard Ltd to explore options for bolstering its finances, Reuters reported last month.

While online sales have helped, they weren't enough to offset losses relating to store closures, and from suits to dresses, apparel sales have been "soft," Gennette said.

However, fine jewelry, kids and home were categories that performed better than others during the pandemic, he said.

Macy's will continue to monitor consumer behavior and expand its packaged food offerings and more, he said.

The largest U.S. department store operator by sales, Macy's expects an operating loss of between $905 million and $1.11 billion in the first quarter, and sales of $3 billion to $3.03 billion, down from $5.50 billion a year earlier.

The loss excludes estimated pretax non-cash goodwill and asset impairment charges for the quarter.