PLANO, Texas, May 2, 2011 /PRNewswire/ -- J. C. Penney Company, Inc. (NYSE: JCP) announced today that its wholly-owned subsidiary, J. C. Penney Corporation, Inc., has completed a new five-year $1.25 billion bank credit facility. The new facility replaces a $750 million credit facility that was scheduled to mature in April 2012 and provides further strength to the Company's liquidity position.
Effective today, the facility may be used for general corporate purposes and will mature in April 2016. In addition, the facility's financial covenant thresholds for both the leverage ratio and fixed charge coverage ratio have been set in alignment with the Company's 2011 operating plan and adjusted to remove the impact of non-cash pension expense. The facility is secured by the Company's inventory, which can be released upon attainment of certain credit rating levels.
Pursuant to this refinancing, the Company now expects to incur approximately $9.0 million in related fees and expenses in the first quarter of 2011. The Company plans to announce its first quarter results on Monday, May 16, 2011.
The arrangement of the credit facility was co-led by J. P. Morgan, Bank of America Merrill Lynch, Barclays Capital and Wells Fargo Bank.
For further information:
Kristin Hays and Angelika Torres; (972) 431-5500
Darcie Brossart (972) 431-3400
About J. C. Penney Company, Inc.
J. C. Penney Company, Inc., one of America's leading retailers, operates over 1,100 jcpenney department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com. Serving more than half of America's families each year, the jcpenney brand offers a wide array of private, exclusive and national brands which reflect the Company's vision to be America's shopping destination for discovering great styles at compelling prices. Traded as "JCP" on the New York Stock Exchange, the $17.8 billion retailer is transforming its organization to support its Long Range Plan strategies to build a sustainable, profitable enterprise that serves its customers, engages its associates and rewards its shareholders. For more information visit, www.jcpenney.net.
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which reflect the Company's current views of future events and financial performance, involve known and unknown risks and uncertainties that may cause the Company's actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, trade restrictions, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, and a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information. Please refer to the Company's most recent Form 10-K and subsequent filings for a further discussion of risks and uncertainties. Investors should take such risks into account when making investment decisions. We do not undertake to update these forward-looking statements as of any future date.
SOURCE J. C. Penney Company, Inc.