JCPenney has completed the refinancing of its $2.25 billion five-year senior secured term loan credit facility entered into in 2013 with an amended and restated $1.688 billion seven-year senior secured term loan credit facility.

JPMorgan Chase was the lead arranger of the amended and restated term loan facility. Barclays Bank, Merrill Lynch, Wells Fargo Securities and Goldman Sachs Lending Partners served as the other joint arrangers.

The amended and restated term loan facility has a lower interest rate than the 2013 facility, representing a 75 basis point reduction and an extended maturity from 2018 to 2023. Proceeds from the amended and restated term loan facility and a senior secured notes offering will be used to repay the entire outstanding principal balance of the 2013 facility. The amended and restated term loan facility and the senior secured notes are guaranteed by the company and certain subsidiaries of JCP.

As a result of this transaction, the company expects to generate approximately $24 million in annualized interest expense savings. In the second quarter of fiscal 2016, the company will record a one-time $34 million non-cash write-off of unamortized debt issuance costs associated with the 2013 facility.

“We were pleased with the strong demand by investors, which allowed us to both lower our interest rate and extend the maturity of our term loan,” said Marvin Ellison, JCP CEO. “We proactively pursued a refinancing due to favorable market conditions and the ability to further enhance our financial flexibility and liquidity position. This reflects the improved performance of our company and the market’s confidence in the company’s strategic goal of achieving $1.2 billion in EBITDA by 2017.”