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.

J.C. Penney, which today said it is working with advisers to raise additional capital, is focused on selling debt, said a person familiar with the matter, who asked not to be identified because the talks are private. While raising cash by selling a stake to a private-equity firm is being considered, it's not the primary option, the person said.