JCPenney Prices $1 Billion Senior Unsecured Debt Offering


J. C. Penney Company, Inc. ("Company") (NYSE:JCP) announced the pricing of $1 billion of new senior unsecured notes. The offering is comprised of two tranches, with $300 million of 5.75 percent Senior Notes Due 2018 at a price of 99.036 percent to yield 5.873 percent and $700 million of 6.375 percent Senior Notes Due 2036 at a price of 98.695 percent to yield 6.475 percent (collectively, the "Notes"). The Notes are being issued by J. C. Penney Corporation, Inc. ("Corporation"), the Company's wholly-owned operating subsidiary, with the Company as co-obligor.

The Corporation will use the net proceeds for the early redemption of approximately $303 million of its 8.125 percent Debentures due 2027. The balance of the net proceeds will be used for general corporate purposes, including the repayment of certain existing long-term debt. Closing of the offering is expected to occur on April 27, 2007.

The securities are being underwritten by a group led by Lehman Brothers Inc., Banc of America Securities LLC, and J.P. Morgan Securities Inc. Copies of the final prospectus supplement and the accompanying base prospectus relating to these securities may be obtained from Lehman Brothers Inc. by mailing Lehman Brothers Inc., at c/o Broadridge Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717, by calling at (888) 603-5847 or by email at, from Banc of America Securities LLC, by mailing Banc of America Securities LLC, Prospectus Department, 100 West 33rd Street, 3rd Floor, New York, New York 10001, by calling (800) 294-1322 or by emailing, from J.P. Morgan Securities Inc. by calling (212) 834-4533, or over the Internet from the SEC's website at

About JCPenney

JCPenney is one of America's leading retailers, operating 1,039 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet,, 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 $19.9 billion in 2006 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 155,000 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, competition, consumer demand, seasonality, economic conditions, including the price and availability of oil and natural gas, changes in interest rates, changes in management, retail industry consolidations, government activity, and acts of terrorism or war. 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.