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J.C. Penney Announces Closing of $2.35B ABL Facility

Date: Jun 24, 2014 @ 07:28 AM
Filed Under: Retail

J. C. Penney Company, Inc. announced it has closed its new $2.35 billion asset-based senior secured credit facility, comprised of a $1.850 billion revolving line of credit and a $500 million term loan. The new facility replaces a $1.850 billion credit facility that was scheduled to mature in April 2016 and provides better pricing terms than the previous facility.

Proceeds from the term loan will be used to pay down the cash borrowings on the previous facility. The revolving line of credit will be available for working capital and general corporate purposes.

Ed Record, Chief Financial Officer of J.C. Penney said, "We proactively pursued this new facility to extend the maturity several years and further enhance our liquidity position, particularly during periods of peak working capital needs.  We are pleased with the improved pricing terms of this facility as well as the support and confidence from our banking partners."

The arrangement of the credit facility was co-led by Wells Fargo, Bank of America Merrill Lynch, J.P. Morgan, Barclays and Goldman Sachs.

See also: Wells Fargo Securities, Others Commit to $2.35B ABL Facility for J.C. Penney

J. C. Penney Company, Inc. is one of the nation's largest apparel and home furnishing retailers.

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