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
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