Penney to Raise as Much as $904 Million After Goldman Fee
J.C. Penney Co. (JCP) may raise as much as $904 million from a stock sale after deducting expenses including a fee by Goldman Sachs Group Inc., the manager of the offering.
The Plano, Texas-based department-store chain is selling 84 million shares at $9.65 apiece and underwriters may sell an additional 12.6 million under a 30-day option. The New York-based investment firm is charging 29 cents a share for handling the offering, which would give it $28 million if all the shares are sold.
The department store chain, which hasn’t been profitable since 2011, announced the stock sale last week, as it raises more cash to get through the holiday season and quell concerns that its liquidity will be strained this quarter. A day after it announced the share sale, the company stoked those concerns again by saying it would have $1.3 billion in liquidity at the end of the year, $200 million less than previously forecast.
Since Chief Executive Officer Mike Ullman returned as CEO in April, J.C. Penney has borrowed about $3.1 billion to help fund its attempt to rebound from Ron Johnson’s failed transformation into a destination for younger, wealthier shoppers.
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