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JCPenney Closes Senior Note Offering
Proceeds Used for Voluntary Contribution to Qualified Pension Plan

PLANO, Texas, May 25, 2010 (BUSINESS WIRE) --J. C. Penney Company, Inc. (NYSE: JCP) (the "Company") and its wholly owned subsidiary, J. C. Penney Corporation, Inc. ("Corporation") announced today the completion of two related transactions that will further strengthen the Company's financial position and create additional financial flexibility to support its growth plans. On May 24, 2010, the Company closed its public offering of $400 million principal amount of senior unsecured notes. The 5.65 percent Senior Notes Due 2020 ("Senior Notes"), which were issued by Corporation, with the Company as co-obligor, were priced at 99.719 percent to yield 5.687 percent. The securities were underwritten by a group led by Barclays Capital Inc., Banc of America Securities LLC, J.P. Morgan Securities Inc., and Wells Fargo Securities, LLC.

Upon closing, the Company used the net proceeds of the offering of approximately $392 million to make a voluntary cash contribution to its qualified pension plan. The Company's qualified plan is one of the best funded pension plans in the United States, as measured by the market value of the plan's assets relative to its projected benefit obligation as of the Company's fiscal year ended January 30, 2010. This contribution further strengthens the plan's funded status and is consistent with the Company's objective of maintaining a well-funded pension plan throughout all business and economic cycles.

Taking into account the completion of the Company's recent tender offer and the additional interest from the new senior notes, net interest expense for the second quarter of 2010 is expected to be approximately $57 million. For the full year, 2010 net interest expense is expected to be $231 million. In addition, the Company will record approximately $20 million of premiums and fees associated with the tender offer in the second quarter.

About JCPenney

JCPenney is one of America's leading retailers, operating 1,109 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 $17.6 billion in 2009 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.
Investor Relations
Phil Sanchez, 972-431-5575
psanc3@jcpenney.com
or
Teneka Ray, 972-431-5026
tray4@jcpenney.com
or
Media Relations
Darcie Brossart or Kristin Hays, 972-431-3400
jcpcorpcomm@jcpenney.com
or
Corporate Website
www.jcpenney.net