JCP Gets Goldman Sachs Loan Facility

PLANO, Texas-J.C. Penney has signed a commitment letter with Goldman Sachs for a five-year loan facility totaling $1.75 billion.

Under the terms of the letter, the department-store retailer will use the funds to pay for its ongoing working-capital requirements and other general corporate purposes. It will be secured by real estate and what a J.C. Penney statement described as "an interest in substantially all other assets of the company and certain of its subsidiaries."

Ken Hannah, J.C. Penney's chief financial officer, said the facility "is an important component of our strategic plan to strengthen the company's financial position." Two weeks ago, J.C. Penney announced that it had drawn $850 million on its $1.85 billion revolving credit facility to meet operating, working-capital and capital-expenditure needs. "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," Hannah said.

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