JPMorgan-Led Group Ups J.C. Penney Borrowing Capacity
J.C. Penney increased its borrowing capacity under a bank credit facility by $100 million to $1.85 billion and expanded an option to borrow more at a later date, raising concerns among analysts as it works on a turnaround.
According to an 8-K filing, J.P. Morgan Securities, Merrill Lynch, Barclays and Wells Fargo Capital Finance acted as joint bookrunners and lead arrangers for the transaction. Bank of America, Barclays Bank and Wells Fargo Bank acted as joint documentation agents. The deal was led by JPMorgan Chase as administrative agent for a 27-bank lender group and Wells Fargo Bank, as LC agent. (See below for institutional commitments)
The new arrangements included a $150 million increase in the credit facility’s accordion feature to $400 million and a $250 million increase in an additional feature, analysts said. An accordion feature allows a borrower to expand a credit facility at a later date.
Penney, which operates 1,100 department stores, began a turnaround a year ago that called for the elimination of most coupons and sales events. Long-term customers, trained for years to seek out discounts, balked at the new pricing strategy and reeled in purchases.
JPMorgan Chase Bank
Bank of America
Wells Fargo Bank
UBS Loan Finance
HSBC Bank USA
The Royal Bank of Scotland
Goldman Sachs Bank USA
The Bank of New York Mellon
Standard Chartered Bank
State Street Bank and Trust Company
Siemens Financial Services
City National Bank
The Bank of Tokyo-Mitsubishi UFJ
Banco Popular de Puerto Rico
The Northern Trust Company
Chang Hwa Commercial Bank
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