March 29, 2017 8:00 AM ET

Multiline Retail

Company Overview of J. C. Penney Corporation, Inc.

Company Overview

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

United States

Founded in 1902

Phone:

972-431-1000

Fax:

972-431-1362

Key Executives for J. C. Penney Corporation, Inc.

Chief Executive Officer and Director
Age: 69
Senior Vice President, Principal Accounting Officer, and Controller
Age: 63
Vice President and Treasurer
Compensation as of Fiscal Year 2016.

J. C. Penney Corporation, Inc. Key Developments

J.C. Penney to Settle Stock Drop Suit

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

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.

J. C. Penney Company, Inc. and J. C. Penney Corporation, Inc. Intend to Offer $500 Million Aggregate Principal Amount of Senior Secured Notes

On June 9, 2016, J. C. Penney Company, Inc. announced that its wholly-owned subsidiary, J. C. Penney Corporation, Inc. (the Corporation, and together with the company, J. C. Penney"), intends to offer $500 million aggregate principal amount of senior secured notes, subject to market and other conditions. The Notes will be guaranteed on a senior secured basis, jointly and severally, by the company and certain domestic subsidiaries of the corporation that will guarantee J. C. Penney's $1.688 billion amended and restated senior secured term loan facility J. C. Penney is seeking to enter into concurrently with the offering of the Notes. J. C. Penney intends to use the net proceeds from the offering of the Notes, together with borrowings under the amended and restated senior secured term loan facility, to repay the entire outstanding principal balance of J. C. Penney's existing $2.25 billion five-year senior secured term loan that was entered into in May 2013. The Notes will be sold to qualified institutional buyers in reliance on Rule 144A and outside the United States to non-U.S. persons in reliance on Regulation S.

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