J.C. Penney Bonds With Debt Limit Surge After $1.75 Billion Loan
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J.C. Penney Co.’s $254.5 million of bonds containing a provision that may restrict the retailer’s debt load surged after the company said proceeds of a new secured loan may be used to amend or acquire the notes.
The company’s 7.125 percent securities due November 2023 jumped 32.5 cents on the dollar to a record 134.75 cents and yielded 3.2 percent at 10:43 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The debt traded as low as 83 cents in January to yield 9.69 percent.