J.C. Penney said in a statement that the five-year loan will be backed by the department store chain's real estate and other assets. The company plans to release more terms of the loan in a filing with the Securities and Exchange Commission.
The company, which is trying to shore up capital and revamp its financial situation, also recently borrowed $850 million from its $1.85 billion revolving credit facility.
Under former CEO Ron Johnson, J.C. Penney endured a 25% decline in sales last year as Johnson tried a more upscale, "no sales or coupons" strategy. He has been replaced by Myron Ullman, who is taking the helm of J.C. Penney once again and is expected to return to the company's former strategy of discount pricing.The new financing comes on top of the recent announcement that billionaire investor George Soros took a 7.9% stake in the company.
Chinese e-commerce company Alibaba Group has purchased an 18% stake in Sina's (SINA) microblogging service Weibo for $586 million. The deal values Weibo at more than $3 billion. Sina said the deal should generate $380 million in revenue for Weibo in the next three years, aiding the company in its quest to make the service more profitable. Sina's U.S.-listed shares climbed 17% to $58.85 on the news. Alibaba will also receive the option to buy up to 30% of Weibo within a stipulated amount of time as part of the agreement. According to Sina, Alibaba and Weibo will work together on things like data exchange, online payments and marketing. Yahoo (YHOO) owns 23% of Alibaba Group.
Drugmakers Pfizer (PFE) and Merck (MRK) said they are embarking on the joint development of Pfizer's experimental type 2 diabetes drug, ertugliflozin. The companies expect late-stage trials of the drug to start later this year. Pfizer has received $60 million in upfront payment and milestones so far and will be eligible for more payments based on certain clinical, regulatory and commercial achievements. Merck and Pfizer will share potential revenue and specific costs on a 60/40 percent basis.
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