J.C. Penney Co. Chief Executive Officer Myron Ullman received a $1.75 billion loan commitment from Goldman Sachs Group Inc. and has been raising some prices as he works to stanch the retailer’s cash drain.
The five-year term loan will be secured by real estate and an interest in other assets of the retailer, Plano, Texas-based J.C. Penney said today in a statement. The proceeds will be used for working capital and to discharge the company’s 7.125 percent notes due in 2023.
While consumers liked the return to coupons, the recent price increases have received negative reactions on social media such as J.C. Penney’s Facebook page, Boss said. That could make the transition more difficult, said Boss, who has a neutral rating on J.C. Penney’s shares, the equivalent of a hold.