US apparel retailer JC Penney plans to sell $350 million of five-year senior notes to retire debt falling due in the next three years.
JC Penney said it will use the proceeds to redeem around $300 million of borrowings due from October of next year through April 2017.US apparel retailer JC Penney plans to sell $350 million of five-year senior notes to retire debt falling due in the next three years. JC Penney said #
The remaining amount, the retailer said, will go towards general corporate purposes including retiring a portion of its old debts.
For the second fiscal quarter of 2014, JC Penney reported sales of $2.8 billion, up from $2.66 billion last year.
EBITDA outperformed analyst expectations as it posted a positive $90 million, a year-on-year improvement of $342 million.
However, the retailer incurred a net loss of $172 million or a negative $0.56 per share in the second quarter of 2014.
JC Penney said it reported a third consecutive quarter of growth, with gross margin improving 640 basis points from same quarter last year and 290 basis points sequentially from first quarter of 2014. (AR)
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