Goldman Sachs Secures $1.75 Billion Loan for JC Penney
Goldman Sachs has secured $1.75 billion in financing for struggling department store chain JC Penney, according to capital markets sources.
The loan, which would be backed by the retailer's real estate, real estate leases and other assets, comes with a coupon slightly above 7 percent and no equity component.
Following the news, the company's stock rose to roughly a two-month high. (Click here to track the company's shares following the report.)
J.C. Penney and its advisors are still deciding how to tap debt markets and have not committed to a Goldman-led facility.
The newly secured loan comes as the retailer is running low on cash.To fund its transformation, J.C. Penney has used up a considerable amount of its cash reserves and ended the fourth quarter with $930 million in cash.
—Reported by CNBC's David Faber