JC Penney Closes $2.35 Billion Credit Facility At Improved Rate

J.C. Penney (NYSE: JCP) obtained new financing valued at $2.35 billion in a new revolving credit line and a $500 million term loan.

Shares moved up 1.2 percent on the news in pre-market trading, to $9.11.

The new facility provides better pricing than a previous, $18.5 billion facility that was slated to mature in April 2016, the company said.

Loan proceeds will pay down the borrowings on the previous facility. The revolving line of credit will be available for working capital and general corporate purposes.

Chief Financial Officer Ed Record said the deal enhances liquidity particularly during periods of peak working capital needs.

"We are pleased with the improved pricing terms of this facility as well as the support and confidence from our banking partners."

The arrangement was co-led by Wells Fargo, Bank of America Merrill Lynch, J.P. Morgan, Barclays and Goldman Sachs.

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