New Issue: J.C. Penney prices $500 million seven-year secured notes at par to yield 5 7/8%

By Paul A. Harris

Portland, Ore., June 9 – J.C. Penney Corp., Inc., a wholly owned subsidiary of J.C. Penney Co., Inc., priced a $500 million issue of seven-year senior secured notes (B1/B+) at par to yield 5 7/8% on Thursday, according to a market source.

The yield printed at the tight end of yield talk and initial guidance, which were set in the 6% area.

J.P. Morgan Securities LLC, Barclays, Wells Fargo Securities LLC, BofA Merrill Lynch and Goldman Sachs & Co. managed the sale.

The Plano, Texas-based apparel and home furnishings retailer plans to use the proceeds, together with proceeds from its amended and restated senior secured term loan facility, to pay off the $2.25 billion five-year senior secured term loan it entered into in May 2013.

Issuer:	J.C. Penney Corp., Inc., a wholly owned subsidiary of J.C. Penney Co., Inc.
Amount:	$500 million
Maturity:	July 1, 2023
Securities:	Senior secured notes
Managers:	J.P. Morgan Securities LLC, Barclays, Wells Fargo Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co.
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Call protection:	Three years
Trade date:	June 9
Settlement date:	June 23
Ratings:	Moody's: B1
	S&P: B+
Distribution:	Rule 144A and Regulation S
Price talk:	6% area
Marketing:	Quick to market

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