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JCPenney Secures a $2B Loan Facility

May 22, 2013 4:37 PM   By Jeff Miller
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RAPAPORT... J. C. Penney Company Inc. entered into a new five-year $2.25 billion senior secured term loan credit facility, which was an amount higher than the anticipated  $1.75 billion originally  announced on April 29. Proceeds of the term loan credit facility will be used to finance JCPenney's  cash tender offer for its notes and to fund ongoing working capital requirements and other general corporate purposes.  The credit facility is guaranteed by the company and subsidiaries  and is secured by mortgages on certain real estate and other assets.

JCPenney's chief financial officer Ken Hannah said,  "We are extremely pleased with the consummation of our term loan and the success of our tender offer. We appreciate the strong demand from investors and their confidence in JCPenney's future. This new funding gives us the financial flexibility to pursue our plans to put the company back on a path to profitable growth. "

Goldman Sachs Bank USA was the lead arranger of the term loan credit facility, with Barclays, J.P. Morgan Securities LLC, BofA Merrill Lynch and UBS Securities LLC serving as the other joint arrangers.

Tags: jcp, jcpenney, Jeff Miller, term loan
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