J.C. Penney Co. (JCP) said it is offering $350 million in senior unsecured debt to raise funds to repurchase as much as $300 million in other debt.

The struggling retailer plans to use any remaining proceeds for other purposes, which may include buying back or otherwise retiring a portion of other debt.

Penney has strived to improve its balance sheet as it continue effort to turn itself around from a disastrous overhaul led by former Chief Executive Ron Johnson that led to a 25% drop in sales in 2013.

The company is offering to buy back portions of three series of debt. Penney's $200 million of medium term-notes that mature in 2015 have first priority. The company's $199.95 million of debentures that come due in 2016 have second priority and its $285.4 million of debentures that mature in 2017 have third priority as well as a $100 million tender cap.

Holders that tender their securities by an early tender deadline of 5 p.m. New York time on Sept. 22 will receive a premium of $30 per $1,000 of face value.

Write to Tess Stynes at tess.stynes@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

J C Penney (NYSE:JCP)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more J C Penney Charts.
J C Penney (NYSE:JCP)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more J C Penney Charts.