Published on 9/10/2014 in the Prospect News High Yield Daily.
New Issue: J.C. Penney sells upsized $400 million five-year notes at par to yield 8 1/8%
By Paul A. Harris
Portland, Ore., Sept. 10 – J.C. Penney Corp., Inc., a wholly owned subsidiary of J.C. Penney Co., Inc., priced an upsized $400 million issue of non-callable five-year senior notes (Caa2/CCC-/) at par to yield 8 1/8% on Wednesday, according to a market source.
The deal was upsized from $350 million.
The yield printed at the tight end of yield talk in the 8¼% area.
J.P. Morgan Securities LLC, Barclays and Goldman Sachs & Co. were the joint bookrunners.
The Plano, Texas-based department store company plans to use the proceeds to fund the tenders for its 6 7/8% medium-term notes due 2015, its 7.65% debentures due 2016 and its 7.95% debentures due 2017. Any remaining proceeds would be used for general corporate purposes, which may include repaying debt.
| Issuer: | J.C. Penney Corp., Inc.
|
| Amount: | $400 million, increased from $350 million
|
| Maturity: | Oct. 1, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co.
|
| Co-managers: | BofA Merrill Lynch, Wells Fargo Securities LLC, Guggenheim Securities LLC, HSBC Securities (USA) Inc., RBS Securities Inc., Regions Securities LLC
|
| Coupon: | 8 1/8%
|
| Price: | Par
|
| Yield: | 8 1/8%
|
| Spread: | 635 bps
|
| Call protection: | Non-callable
|
| Trade date: | Sept. 10
|
| Settlement date: | Sept. 15
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC-
|
| Distribution: | SEC registered
|
| Price talk: | 8¼% area
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
