JC Penney to get $1.75B in financing
THE ASSOCIATED PRESS April 29, 2013 9:18AM
PLANO, Texas — J.C. Penney has confirmed Goldman Sachs will provide it with $1.75 billion in financing, sending shares up 3 percent in early trading.
Rumors about the financing had begun to circulate Friday.
The five-year senior secured term loan can be used to fund the company’s operations as well as pay off some of its debt. It will be secured by real estate, as well as an interest the company’s other assets and some of its subsidiaries.
The company has been burning through cash. Earlier this month, it said it would draw $850 million from its $1.85 billion revolving credit line.
J.C. Penney Corp., based in Plano, Texas, fired CEO Ron Johnson this month after his ambitious turnaround plan backfired and caused sales to plummet.