J.C. Penney Gets $1.75 Billion Loan

J.C. Penney continues its efforts to share up its finances with a $1.75 billion loan from Goldman Sachs.

The five-year senior secured term loan facility may be used to fund ongoing working capital requirements and other general corporate purposes, and also to amend, acquire, satisfy, or discharge the company’s other debts. It is secured by the J.C. Penney’s real estate as well as other assets.

“This loan facility is an important component of our strategic plan to strengthen the company’s financial position,” said chief financial officer Ken Hannah in a statement.  “Together with our revolving credit facility, this will give us the financial strength we need to meet our current funding requirements and build toward a successful future.”

On April 15, Penney’s announced that it had drawn down $850 million on its $1.85 billion committed revolving credit facility.

JCK News Director