Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

v3.5.0.2
Long-Term Debt
6 Months Ended
Jul. 30, 2016
Debt Disclosure [Abstract]  
Long-Term Debt
5. Long-Term Debt
($ in millions)
 
July 30, 2016
 
August 1, 2015
 
January 30, 2016
Issue:
 
 
 
 
 
 
5.65% Senior Notes Due 2020 (1)
 
$
400

 
$
400

 
$
400

5.75% Senior Notes Due 2018 (1)
 
265

 
300

 
300

5.875% Senior Secured Notes Due 2023 (1)
 
500

 

 

6.375% Senior Notes Due 2036 (1)
 
388

 
400

 
400

6.9% Notes Due 2026
 
2

 
2

 
2

7.125% Debentures Due 2023
 
10

 
10

 
10

7.4% Debentures Due 2037
 
313

 
326

 
326

7.625% Notes Due 2097
 
500

 
500

 
500

7.65% Debentures Due 2016
 
78

 
78

 
78

7.95% Debentures Due 2017
 
220

 
220

 
220

8.125% Senior Notes Due 2019
 
400

 
400

 
400

2016 Term Loan Facility
 
1,688

 

 

2013 Term Loan Facility
 

 
2,205

 
2,194

2014 Term Loan
 

 
495

 

Total debt, excluding unamortized debt issuance costs, capital leases and note payable
 
4,764

 
5,336

 
4,830

Unamortized debt issuance costs
 
(67
)
 
(83
)
 
(61
)
Total debt, excluding capital leases and note payable
 
4,697

 
5,253

 
4,769

Less: current maturities
 
341

 
28

 
101

Total long-term debt, excluding capital leases and note payable
 
$
4,356

 
$
5,225

 
$
4,668


(1)
These debt issuances contain a change of control provision that would obligate us, at the holders’ option, to repurchase the debt at a price of 101%.

During the first quarter of 2016, we repurchased and retired $60 million aggregate principal amount of our outstanding debt resulting in a gain on extinguishment of debt of $4 million.

During the second quarter of 2016, we completed the refinancing of our $2.25 billion five-year senior secured term loan facility entered into in 2013 (2013 Term Loan Facility) with an amended and restated $1.688 billion seven-year senior secured term loan credit facility (2016 Term Loan Facility) and the issuance of $500 million of 5.875% Senior Secured Notes due 2023 (Senior Secured Notes), resulting in a loss on extinguishment of debt of $34 million.

The 2016 Term Loan Facility bears interest at a rate of LIBOR plus 4.25% and matures on June 23, 2023. We are required to make quarterly repayments in a principal amount equal to $10.55 million during the seven-year term, subject to certain reductions for mandatory and optional prepayments. Proceeds from the 2016 Term Loan Facility and the Senior Secured Notes were used to repay the entire outstanding principal balance of the 2013 Term Loan Facility. The 2016 Term Loan facility and the Senior Secured Notes are guaranteed by the Company and certain subsidiaries of JCP and are secured by mortgages on certain real estate of JCP and the guarantors.