PLANO, Texas, Apr 08, 2009 (BUSINESS WIRE) -- J. C. Penney Company, Inc. (NYSE:JCP) announced today that its
wholly-owned subsidiary, J. C. Penney Corporation, Inc., has completed a
new three-year $750 million bank credit facility. The new facility
replaces a $1.2 billion credit facility that was scheduled to mature in
April 2010 and provides further strength to the Company's liquidity
The Company had not utilized the $1.2 billion facility for cash
borrowings, and with the strength of the Company's current liquidity
position no borrowings are expected under the new facility other than to
provide support for the issuance of letters of credit.
Effective today, the facility may be used for general corporate purposes
and will mature in April 2012. In addition, the facility's financial
covenant thresholds for both the leverage ratio and fixed charge
coverage ratio have been set in alignment with the Company's 2009
operating plan and adjusted to remove the impact of non-cash pension
expense. The facility is secured by the Company's inventory, which can
be released upon attainment of certain credit rating levels.
The arrangement of the credit facility was co-led by J. P. Morgan
Securities Inc., Bank of America, Barclays Capital and Wachovia Bank,
N.A., a Wells Fargo Company.
JCPenney is one of America's leading retailers, operating 1,101
department stores throughout the United States and Puerto Rico, as well
as one of the largest apparel and home furnishing sites on the Internet,
jcp.com, and the nation's largest general merchandise catalog business.
Through these integrated channels, JCPenney offers a wide array of
national, private and exclusive brands which reflect the Company's
commitment to providing customers with style and quality at a smart
price. Traded as "JCP" on the New York Stock Exchange, the Company
posted revenue of $18.5 billion in 2008 and is executing its strategic
plan to be the growth leader in the retail industry. Key to this
strategy is JCPenney's "Every Day Matters" brand positioning, intended
to generate deeper, more emotionally driven relationships with customers
by fully engaging the Company's approximately 150,000 Associates to
offer encouragement, provide ideas and inspire customers every time they
shop with JCPenney.
This release may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, which reflect the Company's current views of
future events and financial performance, involve known and unknown risks
and uncertainties that may cause the Company's actual results to be
materially different from planned or expected results. Those risks and
uncertainties include, but are not limited to, general economic
conditions, including inflation, recession, unemployment levels,
consumer spending patterns, credit availability and debt levels, changes
in store traffic trends, the cost of goods, trade restrictions, changes
in tariff, freight, paper and postal rates, changes in the cost of fuel
and other energy and transportation costs, increases in wage and benefit
costs, competition and retail industry consolidations, interest rate
fluctuations, dollar and other currency valuations, risks associated
with war, an act of terrorism or pandemic, and a systems failure and/or
security breach that results in the theft, transfer or unauthorized
disclosure of customer, employee or Company information. Please refer to
the Company's most recent Form 10-K and subsequent filings for a further
discussion of risks and uncertainties. Investors should take such risks
into account when making investment decisions. We do not undertake to
update these forward-looking statements as of any future date.
SOURCE: J. C. Penney Company, Inc.
J. C. Penney Company, Inc.
Phil Sanchez, 972-431-5575
Kristin Hays, 972-431-1261
Darcie Brossart, 972-431-3400