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.
Ullman has focused on shoring up the company's finances since replacing Johnson three weeks ago and started by drawing $850 million from its credit line on April 15. He's also reversing Johnson's avoidance of promotions and is raising some prices more than 50 percent while dropping some back down later to give the appearance of a discount, according to a study today from JPMorgan Chase & Co.
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