J.C. Penney Taps $850 Million From Revolver

New CEO Ullman seeks to improve retailer’s liquidity.

J.C. Penney Co. drew $850 million from its revolving credit facility as new Chief Executive Officer Myron Ullman hunts for cash in the wake of his predecessor’s failed overhaul.

A week after replacing Ron Johnson as CEO, Ullman is trying to improve J.C. Penney’s liquidity following the first year in which retailer’s operations consumed cash in decades. The drawdown on the $1.85 billion credit line will be used for capital spending and to replenish inventory as the company opens renovated home departments next month, the Plano, Texas-based retailer said today in a statement.

Adding Coupons

J.C. Penney is halting the practice of reducing discounts than Johnson enacted and will put coupon advertising in newspapers again, Bill Ackman, the activist investor who is the retailer’s largest shareholder, said last week.

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