J.C. Penney to refinance $2bn loan

U.S.-based retailer J. C. Penney has mandated JPMorgan to market its $2bn sub-investment-grade loan.

Proceeds from the issuance offering would be utilized towards refinancing a substantial portion of the company’s debt, which most recently was $4.73bn as of 31 March 2016.

The loans have been rated “B1” and “B+” by Standard & Poors and Moody’s, respectively.

Interest rate on the loan is expected at a floating rate tied to Libor, translating roughly to an annual rate of 5.5%-5.8%.

Source: TheStreet.com