J C Penney : Announces Pricing of Offering of Senior Unsecured Notes
09/10/2014 | 04:06pm US/EasternRecommend:
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PLANO, Texas - (Sept. 10, 2014) - J. C. Penney Company, Inc. (the "Company")
(NYSE: JCP) announced today that its wholly owned subsidiary, J. C. Penney
Corporation, Inc. (together with the Company, "J. C. Penney"), has upsized and
priced its underwritten public offering of $400 million aggregate principal
amount of 8.125% senior unsecured notes due 2019, for which the Company will be
a co-obligor (the "Notes"). The size of the offering was increased from the
previously announced $350 million. The Notes were priced at 100% of face amount
for a yield to maturity of 8.125%. The offering is expected to close on or about
September 15, 2014, subject to market and other conditions. J. C. Penney intends
to use the net proceeds from the offering of the Notes to pay the tender
consideration and related transaction fees and expenses for J. C. Penney's
contemporaneous tender offers to purchase for cash up to $300 million aggregate
principal amount of its outstanding 6.875% Medium-Term Notes due 2015, 7.65%
Debentures due 2016 and 7.95% Debentures due 2017 (collectively, the "Tender
Securities"). J. C. Penney intends to use any remaining net proceeds for general
corporate purposes, which may include further purchasing or otherwise retiring a
portion of its existing indebtedness.
J.P. Morgan Securities LLC, Barclays Capital Inc. and Goldman, Sachs & Co. are
acting as joint book running managers for the offering. To obtain a copy of the
filed prospectus and prospectus supplement for this offering, please contact
J.P. Morgan Securities LLC at 383 Madison Avenue, New York, NY 10179, Attn: J.P.
Morgan Syndicate Desk or (212) 834-4533, Barclays Capital Inc. at c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, (888)
603-5847 or
[email protected] or Goldman, Sachs & Co. at 200
West Street, New York, NY 10282, Attn: Prospectus Department, (866) 471-2526 or
[email protected].
This press release does not constitute an offer to purchase or the solicitation
of an offer to sell any Tender Securities, which offers are being made only by
means of the offer to purchase and related documents with respect thereto.