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J.P. Morgan, Others Arrange J.C. Penney Facility Increase

February 13, 2013, 08:01 AM

The Associated Press reports that retailer JCPenney Co. has amended its bank credit facility to increase its borrowing capacity as it looks to finance its multiyear transformation. The department store chain it expanded the credit facility to $1.85 billion and got an option to increase that by another $400 million.

J.P. Morgan Securities, Bank of America Merrill Lynch, Barclays Capital and Wells Fargo Capital Finance arranged the financing transaction.

The Plano retailer said that the increase enhances its liquidity and provides it with additional financial  flexibility to support its transformation. The strategy is part of an overall plan spearheaded by CEO Ron Johnson to transform every part of the business from the brands it carries to the store experience.

But the overhaul has been more challenging than expected. JCPenney is expected to report later this month its fourth consecutive quarter of big sales drops and net losses since it implemented its new pricing strategy.

View the 8-K Report filed with the Securities and Exchange Commission.

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