Annual report pursuant to Section 13 and 15(d)

Long-Term Debt

v3.6.0.2
Long-Term Debt
12 Months Ended
Jan. 28, 2017
Debt Disclosure [Abstract]  
Long-Term Debt
Long-Term Debt   
($ in millions)
 
2016
 
2015
Issue:
 
 
 
 
5.65% Senior Notes Due 2020 (1)
 
$
400

 
$
400

5.75% Senior Notes Due 2018 (1)
 
265

 
300

5.875% Senior Secured Notes Due 2023 (1)
 
500

 

6.375% Senior Notes Due 2036 (1)
 
388

 
400

6.9% Notes Due 2026
 
2

 
2

7.125% Debentures Due 2023
 
10

 
10

7.4% Debentures Due 2037
 
313

 
326

7.625% Notes Due 2097
 
500

 
500

7.65% Debentures Due 2016
 

 
78

7.95% Debentures Due 2017
 
220

 
220

8.125% Senior Notes Due 2019
 
400

 
400

2016 Term Loan Facility
 
1,667

 

2013 Term Loan Facility
 

 
2,194

Total debt, excluding unamortized debt issuance costs, capital leases, financing obligation and note payable
 
4,665

 
4,830

Unamortized debt issuance costs
 
(63
)
 
(61
)
Total debt, excluding capital leases, financing obligation and note payable
 
4,602

 
4,769

Less: current maturities
 
263

 
101

Total long-term debt, excluding capital leases, financing obligation and note payable
 
$
4,339

 
$
4,668

Weighted-average interest rate at year end
 
6.3
%
 
6.5
%
Weighted-average maturity (in years)
 
15 years

 
 
 
(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%. These provisions trigger if there were a beneficial ownership change of 50% or more of our common stock.

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 (subject to a 1% floor) 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.









Scheduled Annual Principal Payments on Long-Term Debt, Excluding Capital Leases Financing Obligation and Note Payable
($ in millions)
 
2017
$
263

2018
307

2019
442

2020
442

2021
42

Thereafter
3,169

Total
$
4,665