J. C. Penney Company, Inc. JCP today
announced plans to enhance the Company's financial flexibility and position.
As part of that process, and consistent with its previously stated plans, the
Company has drawn $850 million out of its $1.85 billion committed revolving
credit facility. Proceeds will be used to fund working capital requirements
and capital expenditures, including the replenishment of inventory levels in
anticipation of the completion of its newly renovated home departments next
month.
Chief Financial Officer Ken Hannah said, "Earlier this year, we increased our
revolving credit facility in anticipation of operating, working capital and
capital expenditure needs, especially during the first half of the year. As we
near completion of the home department transformation in over 500 stores, we
have been undertaking and will continue to experience a significant inventory
build and increase in capital expenditures."
Hannah continued, "The draw under our revolver today provides more than our
current funding needs to ensure our continued liquidity. Moreover, we will
continue to explore additional capital raising alternatives with the
assistance of our financial advisors."
Over the past few months, the Company has worked to improve performance
through changes in its pricing and promotional strategies, including the
return of coupons, and the development of other new initiatives to drive store
traffic and deliver the style, quality and value that its customers want. The
action today bolsters those efforts, as well as the Company's on-going
financial position.
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