JCPenney borrows $850 million for planned overhaul
PLANO, Texas — JCPenney has drawn $850 million from its $1.85 billion revolving credit line and will use the proceeds to fund working capital requirements and capital expenditures, including replenishing inventory in anticipation of the completion of for its newly overhauled in-store home departments, which are due to be unveiled next month.
"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," said CFO Ken Hannah.
JCPenney said it would continue to explore additional capital-raising alternatives with the help of its financial advisers.
The company says the drawing of the funds provides more than its current funding needs to ensure continued liquidity but it is also looking to explore other alternatives to raise more money.