JCP Gains Credit-Facility Increase to $2.25 Billion



PLANO, Texas-J.C. Penney has entered into a new five-year credit facility that increases the facility’s size to $2.25 billion from $1.75 billion.

Goldman Sachs, which arranged for the original facility which was announced in April, is the lead arranger for the new facility, with Barclays, J.P. Morgan Securities, BofA Merrill Lynch and UBS Securities serving as joint arrangers. Proceeds of the facility will be used to finance the cash tender offer for 7 1/8 percent debentures begun earlier this month, to fund the retailer’s ongoing working capital requirements and for other general corporate purposes.

Ken Hannah, J.C. Penney’s chief financial officer, said, “This new funding gives us the financial flexibility to pursue our plans to put the company back on the path to profitable growth.” Hannah also said the tender offer has been a success. “We appreciate the strong demand from investors and their confidence in J.C. Penney’s future,” he said.

Posted in News, Retail.

Last updated: May 23, 2013