J.C. Penney has a new $1. 25 billion credit facility that matures in April 2016.
The new facility replaces a $750 million credit facility that was due to mature in April 2012.
The retailer said the new facility may be used for general corporate purposes, and that the financial covenant thresholds for both the leverage ratio and the fixed-charge coverage ratio have been set in alignment with the firm’s 2011’s operating plan. The facility is secured by the retailer’s inventory.
J.C. Penney said it will incur $9 million in related fees and expenses in the first quarter of 2011 due to the refinancing. The retailer expects to report first-quarter results on May 16, 2011.