Why J.C. Penney (JCP) Stock Is Down Today

NEW YORK (TheStreet) -- J.C. Penney (JCP) was falling 3.2% to $9.42 Monday after detailing its new credit facility.

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.

Must read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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."

If you liked this article you might like

Wall Street Overlooks Trump's North Korea Threats to Hit New Records

Best Buy Disappointment Sends Retailers Into a Spin

Stocks on Track for Records Even as Trump Goes After North Korea

5 Stores With the Best Return Policies

Amazon Could Kill 400 of the 1,200 Malls in the United States -- Here's How