real-time news and commentary for investors
Friday, Sep 20
Bloomberg: J.C. Penney looking to raise more cash
- A source tells Bloomberg Goldman is advising J.C. Penney (JCP) on "additional fundraising options including borrowing against its real estate holdings." According to a May presentation, Penney estimates its owned/ground-leased real estate is worth $4.07B.
- The struggling retailer has already taken out a $2.25B loan from Goldman this year, and drawn $850M from a $1.85B credit facility. It had $5.8B in debt on its balance sheet as of Aug. 3, offset by only $1.5B in cash/investments. Penney has had negative free cash flow of $2.13B just in the last two quarters (though it should see positive FCF in the seasonally strong Jan. quarter).