J.C. Penney Gets Lenders OK to Raise Billions
According to a Bloomberg report, J.C. Penney got clearance from lenders to sell billions of dollars in stock and debt if needed as it struggles to complete a turnaround.
Bloomberg said J.C. Penney originally entered into the credit accord in January 2012, when it had a limit of $1.5 billion secured by inventory and receivables. The retailer increased the credit line to $1.75 billion, but has yet to draw on the line provided by a syndicate of banks including units of JPMorgan and Bank of America.
Bloomberg said, according to a regulatory filing, under changes to the company’s primary credit line, its banks affirmed that J.C. Penney can sell convertible preferred stock without triggering repayment provisions under the lending agreement.
To read the entire Bloomberg story, click here.
Previously on abfjournal.com: JPMorgan-Led Group Ups J.C. Penney Borrowing Capacity, Wednesday, February 13, 2013