Dallas, Texas 05/21/2014 (FINANCIALSTRENDS) – J.C. Penney Company, Inc (NYSE:JCP) has now provided some additional details on the company’s new credit-facility, a step that is aimed at shoring up cash further. In its regulatory filing with the SEC, the company said that J.C. Penney Corp, its subsidiary, had entered into the commitment letter with many banks for a $2.35B senior-secured revolving credit & term loan facility. Just last week, the company announced that it has obtained a credit facility to replace its existing $1.85B bank line. This new facility will give it an additional $500M in borrowing capacity. JCP now expects to end 2014 with over $2B in cash.
The banks that are providing this credit facility are Wells Fargo Securities Wells Fargo Bank, and National Association as well as Bank of America BAC& Merrill Lynch, Pierce, and Fenner & Smith Incorporated. Also involved are J.P. Morgan Securities LLC & JPMorgan Chase Bank and the Barclays Bank PLC as well as Goldman Sachs Bank USA, as per the filing. The company also recently reported that the sales with the exclusion of the newly opened/ closed stores, rose 6.2% in its latest period, and easily topped its expectations.
Moving back onto firm ground
The company is now making an attempt to ease back from the very disastrous overhaul that had led to the drop of 25% in sales in 2013. The company’s Chief Executive Officer, Myron Ullman has now stabilized JCP’s cash position & halted the long-running drop in sales. The company’s primary operating-subsidiary is J. C. Penney Corporation, Inc. Its business is made up of selling merchandise as well as services to various consumers via its department stores & via through the Internet Website at jcp.com. As of 2 February 2013, it operated 1,104 department-stores across the continental U.S, Alaska & Puerto Rico, of these 429 were company owned, including the 123 stores situated on ground leases.