|JCPenney Completes New $750 Million Credit Facility|
|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.
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