Annual report pursuant to Section 13 and 15(d)

Long-Term Debt

v2.4.0.6
Long-Term Debt
12 Months Ended
Jan. 28, 2012
Long-term Debt, Unclassified [Abstract]  
Long-Term Debt

 

11) Long-Term Debt

 

 

 

 

($ in millions)

2011

 

2010

 

Issue:

 

 

5.65% Senior Notes Due 2020(1)

$            400

$            400

5.75% Senior Notes Due 2018(1)

              300

              300

6.375% Senior Notes Due 2036(1)

              400

              400

6.875% Medium-Term Notes Due 2015

              200

              200

6.9% Notes Due 2026

                  2

                  2

7.125% Debentures Due 2023

              255

              255

7.4% Debentures Due 2037

              326

              326

7.625% Notes Due 2097

              500

              500

7.65% Debentures Due 2016

              200

              200

7.95% Debentures Due 2017

              285

              285

9.0% Notes Due 2012

              230

              230

 

 

 

Total notes and debentures

           3,098

           3,098

Capital lease obligations

                   4

                  1

 

 

 

Total long-term debt, including current maturities

           3,102

          3,099

Less: current maturities

              231

                  -

 

 

 

Total long-term debt

$         2,871

$       3,099

 

 

 

Weighted-average interest rate at year end

                7.1%

              7.1%

Weighted-average maturity

                23 years

 

 

(1) Contain provisions that, at the holders' option, would put the debt back to the Company in the event of a change of control coupled with certain debt rating minimum standards or downgrades.

 

During 2011, there were no debt issuances or debt reductions. During 2010, we had the following debt issuances and debt reductions:

 

2010 Debt Issuance

In May 2010, we closed on our offering of $400 million aggregate principal amount of 5.65% Senior Notes due 2020 and used proceeds of the offering, net of underwriting discounts, of approximately $392 million to make a voluntary cash contribution to the J. C. Penney Corporation, Inc. Pension Plan.

 

2010 Debt Reductions

In May 2010, we accepted for purchase $300 million principal amount of JCP's outstanding 6.375% Senior Notes due 2036 (2036 Notes), which were validly tendered pursuant to a cash tender offer. We paid approximately $314 million aggregate consideration, including accrued and unpaid interest, for the accepted 2036 Notes in May 2010.

 

In March 2010, we repaid at maturity the remaining $393 million outstanding principal amount of JCP's 8.0% Notes due 2010 (2010 Notes).

 

Long-Term Debt Financial Covenants

We have an indenture covering approximately $255 million of long-term debt that contains a financial covenant requiring us to have a minimum of 200% net tangible assets to senior funded indebtedness (as defined in the indenture). This indenture permits our Company to issue additional long-term debt if we are in compliance with the covenant. At year-end 2011, our percentage of net tangible assets to senior funded indebtedness was 322%.

 

Scheduled Annual Principal Payments on Long-Term Debt

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

2012

 

2013

 

2014

 

2015

 

2016

 

2017-2097

 

$  231

$ 1

$  1

$  201

$  200

$  2,468