J. C. Penney Company Inc announced the pricing of $1 billion of new senior unsecured notes. The offering is comprised of two tranches, with $300 million of 5.75 percent Senior Notes Due 2018 at a price of 99.036 percent to yield 5.873 percent and $700 million of 6.375 percent Senior Notes Due 2036 at a price of 98.695 percent to yield 6.475 percent.
The Notes are being issued by J. C. Penney Corporation Inc, the Company's wholly-owned operating subsidiary, with the Company as co-obligor.
The Corporation will use the net proceeds for the early redemption of approximately $303 million of its 8.125 percent Debentures due 2027.
The balance of the net proceeds will be used for general corporate purposes, including the repayment of certain existing long-term debt. Closing of the offering is expected to occur on April 27, 2007.
The securities are being underwritten by a group led by Lehman Brothers Inc, Banc of America Securities LLC, and J.P. Morgan Securities Inc.
Copies of the final prospectus supplement and the accompanying base prospectus relating to these securities may be obtained from Lehman Brothers Inc by mailing Lehman Brothers Inc, at c/o Broadridge Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717, by calling from Banc of America Securities LLC, by mailing Banc of America Securities LLC, Prospectus Department, 100 West 33rd Street, 3rd Floor, New York, New York 10001, by calling from J.P. Morgan Securities Inc. by calling or over the Internet from the SEC's website.
JCPenney is one of America's leading retailers, operating 1,039 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation's largest general merchandise catalog business.
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