UPDATE: JC Penney Confirms $1.75B Term Loan from Goldman Sachs

J. C. Penney Company, Inc. JCP ("the Company") today announced that it has entered into a commitment letter with Goldman Sachs Bank USA under which Goldman Sachs has committed to provide the Company with a five-year $1.75 billion senior secured term loan facility. Chief Financial Officer Ken Hannah said, "This loan facility is an important component of our strategic plan to strengthen the Company's financial position.  Together with our revolving credit facility, this will give us the financial strength we need to meet our current funding requirements and build toward a successful future." Under the terms of the commitment letter, the proceeds of the loan facility may be used to fund ongoing working capital requirements and other general corporate purposes and to amend, acquire or satisfy and discharge the Company's outstanding 7 1/8% Debentures Due 2023. The facility will be secured by real estate, subject to certain carve outs, as well as an interest in substantially all other assets of the Company and certain of its subsidiaries. Further details about the loan facility will be provided in the Form 8-K to be filed by the Company today. On April 15, 2013, the Company announced that it had drawn down $850 million on its $1.85 billion committed revolving credit facility for operating, working capital and capital expenditure needs.