In a regulatory filing with the SECthe retailer said its subsidiary J.C. Penney Corp. Inc. entered into a commitment letter with several banks for a $2.35 billion senior secured asset-based revolving credit and term loan facility.
The new credit facility replaces an existing $1.85 billion credit agreement, giving the retailer $500 million more in borrowing capacity. The company will use the proceeds from the new credit facility to repay or refinance part of the existing credit line, pay expenses and fees connected to the new credit facility, and for general corporate purposes.
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TheStreet Ratings team rates PENNEY (J C) CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PENNEY (J C) CO (JCP) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."