Moody’s Investors Service hit J.C. Penney Co. Inc. with a credit downgrade after the company took on a new $1.75 billion loan.The retailer’s long-term rating was cut to “Caa1” from “B3.” Ratings in the “Caa” scale are judged to be of “poor standing” by Moody’s. About $2.9 billion in debt was covered by the downgrade, and the outlook on the rating remains negative.Last month Penney’s drew down $850 million from its credit facility and arranged with Goldman Sachs the $1.75 billion term loan, which is secured by a first lien on the company’s real estate and a second lien on its inventory and accounts receivable. “Although the term loan bolsters JCP’s liquidity, it will not solve JCP’s longer-term performance concerns nor reduce the level of anticipated cash burn at JCP over the next twelve months,” Moody’s said. “The downgrade acknowledges that the term loan will greatly weaken JCP’s capital structure at a time when its earnings are at precarious levels.”RELATED STORY: Appeals Court Judge Sides With J.C. Penney >>Money from the Goldman loan will go toward working capital requirement and to satisfy bonds that were set to expire in 2023. Penney’s on Tuesday kicked off a cash tender offer from the 7.125 percent debt. Holders of that debt are being asked to approve amendments to its terms and therefore are getting a premium. “The total consideration consists of an amount equal to $1,300 per $1,000 principal amount of notes, plus a consent payment in an amount equal to $50 per $1,000 principal amount of notes,” Penney’s said.
Exclusive: @isabelmarant and @lorealmakeup have teamed up to create a capsule makeup collection. "She is rather natural in the day but doesn't have time to go back home before going out [in the evening] and redo her entire beauty look," said Marant on the 5 products included in the collection, which will launching in September. Read @jenniferbethweil's interview with the designer on WWD.com. #wwdnews #wwdbeauty
After 17 years, Tomas Maier is leaving @bottegaveneta. “I am deeply grateful to him and I personally thank him for the work he accomplished, and for the exceptional success he helped to achieve,” said François-Henri Pinault, head of parent company @kering_official. Head to WWD.com for more on his departure. #wwdnews #wwdfashion (📷: Davide Maestri)
@shaymitchell is no stranger to teaming up with beauty brands, but she’s made her latest partnership official: She’s signed with @buxomcosmetics as global creative brand ambassador, WWD learned exclusively. Mitchell and Buxom will collaborate on campaign development, social media strategy and content and new product and shade development. Read more on WWD.com. #wwdbeauty (📷: @clint_spaulding)
Today we’re at the WWD Retail 20/20 Forum where industry leaders will be talking about the future of shopping for fashion, footwear and beauty. Tune in on Instagram Live at 9 am and 3:30 pm to hear from two of our speakers –– @therealreal’s Rati Levesque and @bandier’s Stephen Ippolito. #wwdsummits (📷: @elizaflorendo)
Seen last night at @coach’s launch party for “Life Coach,” an interactive pop-up in Soho: @joansmalls. Open now, visitors of the pop-up can engage in themes of “creativity and self-expression,” through tarot, carnival games, live performances and art. See the rest of the party pics on WWD.com. #wwdeye (📷: @vnina)
“We figure there’s enough cynicism to go around the world right now let’s go out there and be ourselves, let’s be enthusiastic, let’s have positive energy, which is something I think a lot of people really want and need right now,” said musician @joshgroban ahead of hosting the Tony Awards with @sarabareilles. Read @leighn’s interview with Groban on how he picked his look for the night, his next record and more on WWD.com. #wwdeye #tonyawards (📷: @vnina)
“Rock as an attitude and not a uniform. Street as a style and not just clothing. Sportswear as the new normality,” @paul_surridge said of his first @roberto_cavalli men’s wear collection, previewed here. The British designer joined the brand as the creative director in May 2017, and is gearing up to unveil his debut for the label with a runway show at the Florence Charterhouse on June 13 at #PittiUomo. Head to WWD.com to read more about his collection and see more sneak peek photos. #wwdfashion (📷: @simonelezzi)