J.C. Penney has closed a new credit facility that executives say will provide the retailer with eight Connecticut department stores with more flexibility when cash is needed, the Associated Press reports.
Cash burn has been a concern among industry watchers as the Plano, Texas, retailer attempts to recover from a failed turnaround under one-time Apple executive Ron Johnson, the AP said.
The new $2.35 billion senior secured credit facility, replacing a $1.85 billion facility set to mature in April 2016.
Penney’s Connecticut stores are in Farmington/West Hartford; Manchester; Danbury; Milford; Torrington; Trumbull; Waterbury; and Waterford.
The new credit facility has better pricing terms than the previous one, according to J.C. Penney, and includes a $1.85 billion revolving credit line, as well as a $500 million term loan.
The company said Monday that the loan’s proceeds would be used to pay down the previous facility, AP reported. Penney said the revolving credit line will be for working capital and general corporate purposes.
