JCPenney announces repayment of repurchase term loan and refinancing of ABL and FILO facilities

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The transaction reduces JCPenney’s outstanding indebtedness and significantly improves the conditions of the ABL and FILO facilities

LEWISVILLE, Texas – (BUSINESS WIRE) – JCPenney today announced that it repaid its $ 506 million trade-in term loan on December 1, 2021. The Company used its strong existing liquidity position to reduce debt and saving interest in the company continues its transformation.

The repurchase term loan was held by DIP and senior lenders of JCPenney following the restructuring of the Company in 2020. As a result of this refinancing, JCPenney will have reduced its outstanding debt by $ 800 million to $ 500 million and will have approximately $ 1.8 billion in cash on hand.

JCPenney also finalized the refinancing of its ABL and FILO facilities on December 16, 2021. The newly refinanced ABL and FILO facilities will mature on December 16, 2026 and will benefit from availability, pricing and other favorable terms improved by compared to previous facilities. . The ABL facility, led by Wells Fargo and PNC, will consist of a $ 1.75 billion ABL credit facility and a $ 160 million term loan. The $ 340 million FILO facility was led by Pathlight Capital.

“The repayment of our current term loan and the refinancing of our ABL and FILO facilities are a testament to JCPenney’s results over the past year and represent a further strengthening of our balance sheet,” said Stanley Shashoua, Executive Chairman.

“Our continued impressive liquidity position leaves us with strong financial flexibility to accelerate the growth of the business as we continue to evolve while providing affordable fashion and a great shopping experience for American families,” said Marc Rosen , CEO.

About JCPenney

JCPenney is proud to serve customers at more than 650 stores in the United States and Puerto Rico and at the company’s flagship store, jcp.com. JCPenney is one of the nation’s largest apparel, home, jewelry and beauty retailers with a growing portfolio of private and national brands. Guided by the Golden Rule, JCPenney employs more than 50,000 associates worldwide and has served clients for over 119 years, playing a vital role in the communities it serves. For more information, please visit jcp.com and follow JCPenney on Facebook, Instagram and Twitter.

Media contacts

Melissa Seekely, Manager, Corporate Communications

[email protected]

Source: JCPenney



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