About eight hours after J.C. Penney Co. said yesterday it was “pleased” with its turnaround, the retailer announced the sale of 84 million shares to raise cash.
Goldman Sachs Group Inc. is running the offering, the Plano, Texas-based department-store chain said in a statement yesterday. The underwriters will have a 30-day option to buy as many as an additional 12.6 million shares, which would push the total to 96.6 million shares. Based on yesterday’s closing price, the value of the sale would be about $1 billion.
“For a survivability point, it’s obviously better to raise equity while you can, rather than more debt when the debt is already high,” Swinand said.