J.C. Penney Launches Stock Offering, Declares Progress in Turnaround Efforts
PLANO, Texas-J.C. Penney has begun a public offering of 84 million shares of its common stock.
The offering, which is expected to close on Oct. 1, is priced at $9.65 a share, and the retailer said in a statement that it plans to use the funds from the offering for "general corporate purposes." Also, the company is granting an option of an additional 12.6 million shares for the underwriters to purchase in 30 days. Goldman Sachs is serving as the manager for the offering, J.C Penney said.
In a filing with the U.S. Securities and Exchange Commission, J.C. Penney said that "it is pleased with the progress thus far in the company's turnaround efforts and the traction its initiatives are starting to achieve." The filing also said the retailer "continues to be encouraged by improvements in purchase conversion both in store and on jcp.com, primarily due to being back in stock in key items and sizes the customer expects to find at jcpenney."
The filing also said sales on jcp.com "continue to trend double digits ahead of last year. The company still anticipates it will experience positive comparable-store sales trends coming out of the third quarter and throughout the fourth quarter of 2013." In addition, J.C. Penney said in the filing that it expects to end the year with about $1.3 billion in overall liquidity, given its current cash position and the undrawn portion of its credit facility, and not taking into account the proceeds of this stock offering.
In a separate SEC filing, J.C. Penney said Mark Sweeney, senior vice president and controller, has left the company. Also, Dennis Miller, senior vice president of finance, is now serving as the retailer's principal accounting officer. Miller had served as controller from June 2008 to September of last year.