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  • J.C. Penney Can Hit $10 This Year, But Investors Beware, Liquidity Is A Problem [View article]
    Great to see the company returning margins and getting liquidity issues out of the way.
    Feb 27 10:04 AM | 1 Like Like |Link to Comment
  • J.C. Penney's CEO Discusses Q4 2013 Results - Earnings Call Transcript [View article]
    Was it from Distressed Debt?
    Feb 26 10:59 PM | 1 Like Like |Link to Comment
  • J.C. Penney's CEO Discusses Q4 2013 Results - Earnings Call Transcript [View article]
    I was fileted for my report just a few days ago. Vindication feels great.
    Feb 26 10:37 PM | 3 Likes Like |Link to Comment
  • Beazer Homes Growth Plan Seems Overambitious [View article]
    Not sure. I believe its been up since Feb 6
    Feb 26 10:01 PM | Likes Like |Link to Comment
  • J.C. Penney Can Hit $10 This Year, But Investors Beware, Liquidity Is A Problem [View article]
    Good work mono. Thanks for emailing. Let us all know what you find.
    Feb 26 12:01 PM | Likes Like |Link to Comment
  • J.C. Penney Can Hit $10 This Year, But Investors Beware, Liquidity Is A Problem [View article]
    Which parts?
    Feb 26 11:41 AM | Likes Like |Link to Comment
  • J.C. Penney Can Hit $10 This Year, But Investors Beware, Liquidity Is A Problem [View article]
    Wouldn't JCP have to report though if they renegotiated the terms in some more meaningful way?
    Feb 26 11:21 AM | Likes Like |Link to Comment
  • J.C. Penney Can Hit $10 This Year, But Investors Beware, Liquidity Is A Problem [View article]
    Yeah neither do I. And I think we all want the right answer, which I have said from the beginning.
    Feb 26 11:00 AM | Likes Like |Link to Comment
  • J.C. Penney Can Hit $10 This Year, But Investors Beware, Liquidity Is A Problem [View article]
    Okay...since no one will share anything, and I thought this website was about sharing ideas/information.

    Here is the much debated section of the 10-Q. Instead of attacking one another (and I will start by saying DDA knows a lot about this and let's work together), let's try to digest this:

    3. Credit Facility
    On February 8, 2013, J. C. Penney Company, Inc., JCP and J. C. Penney Purchasing Corporation (Purchasing) entered into an amended and restated revolving credit agreement in the amount up to $1,850 million (2013 Credit Facility), which replaced the Company’s prior credit agreement entered into in January 2012, with largely the same syndicate of lenders under the previous agreement, with JPMorgan Chase Bank, N.A., as administrative agent. The 2013 Credit Facility matures on April 29, 2016, increases the letter of credit sublimit to $750 million and provides an accordion feature that could potentially increase the size of the facility by an additional amount not to exceed $400 million.
    The 2013 Credit Facility is an asset-based revolving credit facility and is secured by a perfected first-priority security interest in substantially all of our eligible credit card receivables, accounts receivable and inventory. The 2013 Credit Facility is available for general corporate purposes, including the issuance of letters of credit. Pricing under the 2013 Credit Facility is tiered based on JCP’s senior unsecured long-term credit ratings issued by Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services. JCP’s obligations under the 2013 Credit Facility are guaranteed by J. C. Penney Company, Inc.
    Availability under the 2013 Credit Facility is limited to a borrowing base which allows us to borrow up to 85% of eligible accounts receivable, plus 90% of eligible credit card receivables, plus 85% of the liquidation value of our inventory, net of certain reserves. Letters of credit reduce the amount available to borrow by their face value. In the event that availability under the 2013 Credit Facility is at any time less than the greater of (1) $125 million or (2) 10% of the lesser of the total facility or the borrowing base then in effect, for a period of at least 30 days, the Company will be subject to a fixed charge coverage ratio covenant of 1.0 to 1.0 which is calculated as of the last day of the quarter and measured on a trailing four-quarter basis.

    7
    Table of Contents

    On April 12, 2013, we borrowed $850 million under the 2013 Credit Facility of which $200 million was repaid during the third quarter of 2013. As of the end of the third quarter of 2013, $650 million of the borrowing remains outstanding. The borrowing bears interest at a rate of LIBOR plus 3.0%. As of the end of the third quarter of 2013, we had $534 million in standby and import letters of credit outstanding under the 2013 Credit Facility, the majority of which are standby letters of credit that support our merchandise initiatives and workers’ compensation. None of the standby or import letters of credit have been drawn on. The applicable rate for standby and import letters of credit was 3.00% and 1.50%, respectively, while the required commitment fee was 0.50% for the unused portion of the 2013 Credit Facility. As of the end of the third quarter of 2013, we had $666 million available for future borrowing, of which $481 million is currently accessible due to the limitation of the fixed charge coverage ratio.
    4. Long-Term Debt
    Tender Offer
    On April 30, 2013 we announced the commencement of a cash tender offer (Tender Offer) and consent solicitation for our 7.125% Debentures Due 2023 (Notes) for total consideration consisting of an amount equal to $1,350 per $1,000 principal amount of Notes, including a consent payment in the amount equal to $50 per $1,000 principal amount of Notes. We solicited consents to effect certain proposed amendments to the indenture, as amended and supplemented, governing the Notes (the Indenture) that would eliminate most of the restrictive covenants and certain events of default and other provisions in the Indenture (Proposed Amendments).
    On May 14, 2013, we announced that we had amended our previously announced Tender Offer (Amended Tender Offer) and related solicitation of consents to extend the expiration date of the consent solicitation and to increase the tender consideration. The Amended Tender Offer increased the total consideration from $1,350 to $1,450 per $1,000 principal amount of the Notes (Amended Tender Offer Consideration); extended the expiration date of the consent solicitation from May 13, 2013 to May 20, 2013 (Consent Expiration) and extended the expiration of the tender offer from May 28, 2013 to June 4, 2013 (Expiration Time).
    Holders that validly tendered their Notes prior to the Consent Expiration, as extended, received the Amended Tender Offer Consideration. Holders that validly tendered their Notes after the Consent Expiration, as extended, but prior to the Expiration Time, as extended, received only the tender offer consideration of $1,400 per $1,000 principal amount of the Notes (Tender Offer Consideration). Holders whose Notes were accepted for purchase in the Amended Tender Offer also received accrued and unpaid interest to, but not including, the applicable payment date for the Notes. On May 22, 2013, we accepted for purchase $243 million in aggregate principal amount of the Notes, representing 95.41% of the outstanding principal amount, for aggregate Amended Tender Offer Consideration of $352 million. On June 5, 2013, we accepted for purchase an additional $2 million in aggregate principal amount of the Notes, for aggregate Tender Offer Consideration of $3 million. The Tender Offer resulted in a loss on the extinguishment of debt of $114 million which includes the premium paid over face value of the Notes of $110 million, reacquisition costs of $2 million and the write-off of unamortized debt issue costs of $2 million. As a result of receiving the requisite consent of the Holders of at least 66 2/3% of aggregate principal amount of Notes outstanding, the Proposed Amendments were approved and became operative.
    Term Loan Facility
    On May 22, 2013, we entered into a $2.25 billion five-year senior secured term loan facility (2013 Term Loan Facility). The 2013 Term Loan Facility is guaranteed by J. C. Penney Company, Inc. and certain subsidiaries of JCP, and is secured by mortgages on certain real estate of JCP and the guarantors, in addition to substantially all other assets of JCP and the guarantors. Proceeds of the 2013 Term Loan Facility were used to fund the Amended Tender Offer and will be used to fund ongoing working capital requirements and general corporate purposes. We are required to make quarterly repayments in a principal amount equal to $5.625 million during the five-year term of the 2013 Term Loan Facility, beginning September 30, 2013, subject to certain reductions for mandatory and optional prepayments. As of the end of the third quarter of 2013, the balance of the 2013 Term Loan Facility is $2.24 billion.


    My question, therefore, is why does the credit facility say 2016 if it really matures on 2014?
    Feb 26 10:30 AM | Likes Like |Link to Comment
  • In The Largest Markets, Ford Leads And General Motors Follows [View article]
    @spitfire - Thank you, and yes, there are many other markets that we can address in future articles.

    @Jack- The new Lincoln MKZ and MKS are quite the head turners. Both have a luxurious look inside and out.

    @1980XLS - You should check out the new MKZ and MKS up close. The Lincoln badge has come a long way from previous years.
    Feb 26 10:30 AM | Likes Like |Link to Comment
  • Polaris: Promising Catalyst But No Upside [View article]
    That just goes to show how much there is a challenge to upside when even our over projection cannot warrant higher equity values.
    Feb 25 09:24 AM | Likes Like |Link to Comment
  • J.C. Penney Can Hit $10 This Year, But Investors Beware, Liquidity Is A Problem [View article]
    Its not due until 2016 though upon my research.
    Feb 24 11:53 PM | Likes Like |Link to Comment
  • J.C. Penney Can Hit $10 This Year, But Investors Beware, Liquidity Is A Problem [View article]
    We are not going to engage you any further. We have reported you as well for blanket dismissals. SA already contacted me and noted I did not have to change anything. We respectfully asked for sourcing. If your goal is to provide insight and provide information, then you would respond with a link. We have missed things before, but at this point, you appear to be more interested in just blanket dismissals that are not productive.

    If you can provide a link and a respectful tone, we will communicate further.

    Thank you.
    Feb 24 03:33 PM | 3 Likes Like |Link to Comment
  • J.C. Penney Can Hit $10 This Year, But Investors Beware, Liquidity Is A Problem [View article]
    Ya where is this supposed link?
    Feb 24 03:12 PM | Likes Like |Link to Comment
  • J.C. Penney Can Hit $10 This Year, But Investors Beware, Liquidity Is A Problem [View article]
    It doesn't say that at all.
    Feb 24 03:12 PM | Likes Like |Link to Comment
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