J.C. Penney gets $750 million three-year credit facility from lenders

By Sara Rosenberg

New York, April 8 - J.C. Penney Corp. Inc. closed on a new $750 million three-year credit facility, according to a news release.

JPMorgan, Bank of America, Barclays and Wachovia acted as the lead banks on the deal.

Covenants include leverage and fixed charge coverage ratios, which have been adjusted to remove the impact of non-cash pension expense.

Security is inventory that can be released upon attainment of certain credit rating levels.

Proceeds can be used for general corporate purposes, although the company does not anticipate drawing on the facility other than to provide support for the issuance of letters-of-credit.

The new loan replaces a $1.2 billion credit facility that was scheduled to mature in April 2010.

J.C. Penney is a Plano, Texas-based operator of department stores.

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