J.C. Penney increases credit facility to $1.85 billion

12/02/2013 - 22:46

(Reuters) - J.C. Penney Co Inc said on Tuesday that it increased its borrowing capacity under a bank credit facility to $1.85 billion and expanded the accordion feature of the facility to $400 million, giving the retailer more flexibility as it works on a turnaround.

It was not immediately clear what the exact value of the facility was previously. The company could not be immediately reached for comment. Last week, the value of a Penney credit facility was reported to be $1.75 billion.

"As we enter the second year of our transformation, today's announcement reflects the confidence of our banking group in our long-term strategy and further strengthens our liquidity position as we continue to execute our plan," Chief Financial Officer Ken Hannah said in a statement.

The arrangement of the credit facility was co-led by J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays Capital and Wells Fargo Capital Finance, the company said.

(Reporting by Jessica Wohl in Chicago; Editing by Leslie Adler)