JCPenney refinanced its $2.35 billion senior secured asset-based revolving credit facility in a transaction arranged by Wells Fargo, Bank of America Merrill Lynch, JPMorgan, Barclays and Goldman Sachs.
Fitch Ratings assigned ‘BB+/RR1’ ratings to J.C. Penney’s new $1.69 billion senior secured term loan.
J.C. Penney received $500 million of incremental bank commitments to increase the size of its existing ABL revolver to $2.35 billion. Wells Fargo, J.P. Morgan, Barclays, BofA Merrill, Citizens, Regions and HSBC co-led the arrangement and syndication of the deal.
Moody’s Investors Service said it revised J.C. Penney’s rating outlook to positive from stable. The revision reflects Moody’s view that the company’s operating performance has shown signs of improvement.
According to a Bloomberg report, J.C. Penney, bolstered by rising sales for the first time in three years, is cutting the rate on a $500 million loan it’s seeking to repay debt.
Wells Fargo Securities, Bank of America, Wells Fargo Bank, Merrill Lynch and others provided a $2.35 billion senior secured asset-based revolver and term-loan facility to J.C. Penney.
According to Bloomberg, J.C. Penney has posted its first quarterly sales gain since 2011, after posting more than $2.5B in losses in the past three years.
The Wall Street Journal reported that J.C. Penney is working with AlixPartners to identify cost savings and manage cash-flow.
J.C. Penney reported that it is making solid progress in its turnaround and provided an update on the company’s operating performance and key initiatives underway to return to profitable growth.
Bloomberg reported that J.C. Penney announced the sale of 84 million shares to raise cash. The value of the sale would be about $1 billion based on yesterday’s closing share price.