Company Overview of J. C. Penney Corporation, Inc.
J. C. Penney Corporation, Inc. operates departmental stores that offers merchandise and services to consumers. The company also offers catalog retail and Internet retailing. It sell family apparel, footwear, accessories, fine and fashion jewelry, and beauty products. The company was founded in 1902 and is based in Plano, Texas. J. C. Penney Corporation, Inc. operates as a subsidiary of J. C. Penney Company, Inc.
6501 Legacy Drive
Plano, TX 75024-3698
Founded in 1902
Key Executives for J. C. Penney Corporation, Inc.
Chief Executive Officer and Director
Senior Vice President, Principal Accounting Officer, and Controller
Vice President and Treasurer
Compensation as of Fiscal Year 2017.
J. C. Penney Corporation, Inc. Key Developments
J. C. Penney Company, Inc., J. C. Penney Corporation, Inc., J. C. Penney Purchasing Corporation Enter into Amendment No. 2 to Credit Agreement to Amend and Restate the Corporation's Existing Credit Agreement
Jun 20 17
On June 20, 2017, J. C. Penney Company, Inc., J. C. Penney Corporation, Inc., J. C. Penney Purchasing Corporation and certain subsidiaries of the Corporation entered into Amendment No. 2 to Credit Agreement to amend and restate the Corporation's Existing Credit Agreement with the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent. The Amended and Restated Credit Agreement replaces the Credit Agreement, dated as of June 20, 2014, among the Loan Parties, the lenders party thereto, the Administrative Agent and the other parties thereto and provides for an asset-based revolving credit facility up to $2.35 billion, with a $750 million letter of credit sublimit and a $100 million swingline advance limit. As with the Existing Credit Agreement, borrowing availability under the revolving facility will vary according to the Loan Parties' levels of inventory, credit card receivables and accounts receivable. The Amended and Restated Credit Agreement is expected to mature on June 20, 2022. All borrowings under the Amended and Restated Credit Agreement accrue interest at a rate equal to, at the Corporation's option, a base rate or an adjusted LIBOR rate plus a spread. The proceeds of the Amended and Restated Credit Agreement may be used for working capital and general corporate purposes. As of the date hereof, there are no outstanding loans under the Existing Credit Agreement. As with the Existing Credit Agreement, the obligations of the Loan Parties under the Amended and Restated Credit Agreement are guaranteed by the Loan Parties and certain of the Company's indirect wholly-owned subsidiaries that are not borrowers under the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement is secured by collateral substantially similar to the Existing Credit Agreement pursuant to the Guarantee and Collateral Agreement dated as of June 20, 2014 among the Loan Parties, the subsidiaries of the Corporation identified therein, and the Administrative Agent. As with the Existing Credit Agreement, the Amended and Restated Credit Agreement contains customary affirmative and negative covenants and there are exceptions to these covenants and some are only applicable when availability falls below certain thresholds. The Amended and Restated Credit Agreement requires the Corporation to maintain, at all times, minimum excess availability of not less than (a) $200 million in the event that 10% of the lesser of (A) the commitments under the revolving facility or (B) the Borrowing Base (such lesser amount, the Revolving Credit Line Cap), is equal to or greater than $200 million or (b) in the event that 10% of the Revolving Credit Line Cap is less than $200 million, the greater of (A) 10% of the Revolving Credit Line Cap or (B) $150 million. The minimum excess availability covenant will not apply if the Corporation maintains a Fixed Charge Coverage Ratio, as defined in the Amended and Restated Credit Agreement, of not less than 1.00 to 1.00 for the most recent period of four consecutive fiscal quarters ended on or prior to the determination date. The Amended and Restated Credit Agreement also contains customary events of default for credit facilities of this type. Upon an event of default that is not cured or waived within any applicable cure periods, in addition to other remedies that may be available to the lenders, the obligations of the Loan Parties may be accelerated, outstanding letters of credit may be required to be cash collateralized and remedies may be exercised against the collateral.
J.C. Penney to Settle Stock Drop Suit
Jan 10 17
A federal court judge has preliminarily approved a settlement in a class action against J.C. Penney Corp. over its handling of the company stock fund in its retirement plan. Under the terms of the settlement, J.C. Penney will pay $4.5 million to resolve allegations that it breached its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by failing to prudently and loyally manage the plan's assets and to adequately monitor the independent fiduciary and provide the independent fiduciary with accurate information. The lawsuit alleged that plan fiduciaries allegedly knew or should have known that the J. C. Penney Common Stock Fund was an imprudent investment under ERISA. According to the settlement agreement, defendants deny any and all liability to plaintiffs and the plan, and deny any and all allegations of wrongdoing made in the action. Defendants deny that some or all of them were fiduciaries under ERISA, or were acting as ERISA fiduciaries at the time of the events complained of, or to the extent that any of them were acting as fiduciaries, that any breach of fiduciary duty occurred in connection with the investment, acquisition, or retention of the J. C. Penney Common Stock Fund in the plan. Defendants further contend that they acted prudently and loyally at all times and in all respects with regard to the plan. The settlement class includes all individuals, excluding defendants, who participated in the plan, and whose individual accounts held units of the J. C. Penney Common Stock Fund between November 1, 2011, and May 31, 2016.
J. C. Penney Company, Inc. and J. C. Penney Corporation, Inc. Enter into Restatement Agreement to Amend and Restate Existing Credit Agreement
Jun 24 16
On June 23, 2016, J. C. Penney Company, Inc., J. C. Penney Corporation, Inc. and certain subsidiaries of the Corporation entered into a Restatement Agreement to amend and restate the Corporation’s Existing Credit Agreement with the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, which Amended and Restated Credit Agreement provides for a $1,688,125,000 senior secured term loan credit facility. Also on June 23, 2016, the Credit Parties entered into an Indenture with Wilmington Trust, National Association, as trustee, which provides for the issuance by the Corporation of $500,000,000 aggregate principal amount of 5.875% Senior Secured Notes due 2023. The Amended and Restated Credit Agreement replaces the Credit and Guaranty Agreement, dated as of May 22, 2013. The maturity date for the Amended and Restated Term Loan Facility is June 23, 2023, provided that the maturity date may be extended with respect to the loans of lenders agreeing to extend the maturity date subject to certain terms and conditions specified in the Amended and Restated Credit Agreement. Interest on the outstanding amount borrowed under the Amended and Restated Term Loan Facility accrues at an annual rate equal to either LIBOR or the base rate, at the Corporation’s election, in each case plus an applicable margin equal to 4.25% per annum with respect to loans bearing interest based on LIBOR or 3.25% per annum with respect to loans bearing interest based on the base rate. LIBOR is the per annum rate reported by Reuters as the London interbank offered rate as administered by ICE Benchmark Administration for dollar deposits with an interest period of one, two, three or six months (at the Corporation’s election), adjusted to account for reserves required to be maintained by member banks of the Federal Reserve System against Eurocurrency liabilities, with a minimum LIBOR floor of 1.00%. The base rate is the per annum rate equal to the greatest of (i) the prime rate in effect at the Administrative Agent’s principal office in New York City, (ii) the greater of (a) the federal funds effective rate and (b) the overnight bank funding rate, plus 0.50% and (iii) LIBOR with an interest period of one month plus 1.00%, with a minimum base rate floor of 2.00%. In addition, the Corporation is required to pay certain fees in connection with the Amended and Restated Term Loan Facility, including a closing fee paid to the lenders under the Amended and Restated Term Loan Facility equal to 0.50% of the stated principal amount of the Amended and Restated Term Loan Facility.
Similar Private Companies By Industry
Recent Private Companies Transactions
|No transactions available in the past 12 months.|