JC Penney hopes to raise $810 million

PLANO, Texas (AP) — J.C. Penney, the struggling retailer that is trying to reassure the market about its financial stability, expects to raise about $810.6 million via a public stock offering.

J.C. Penney said Friday it plans to offer 84 million shares priced at $9.65 per share. That is a 7.3 percent discount to Thursday’s closing price of $10.42 per share.

The Plano, Texas company could raise more than that if the underwriters exercise in full a 30-day option to buy up to an additional 12.6 million shares.

Its stock dropped more than 6 in premarket trading Friday.

The offering is expected to close on Tuesday.

J.C. Penney Co. also disclosed in a regulatory filing that it anticipates having about $1.3 billion in cash or assets that can readily be converted to cash at year’s end. That excludes the net proceeds from the offering.

J.C. Penney is trying to recover from a failed turnaround attempt spearheaded by its former CEO Ron Johnson that led to disastrous results. Its board ousted Johnson in April after 17 months on the job and rehired Mike Ullman, who had been CEO of the retailer from 2004 to late 2011. Under Ullman, J.C. Penney is bringing back sales events that had been ditched and restoring basic merchandise like khakis that were eliminated by Johnson.

The retailer, which has seen its shares in a free fall in recent days, on Thursday sought to appease investors who were worried about its cash liquidity and sales following a gloomy analyst report on the company. The department store chain released a statement Thursday morning that it was pleased with its turnaround efforts. CNBC also quoted Ullman as saying that he doesn’t see conditions this year where “we’d need to raise liquidity.”

The stock dropped as low as $9.52 on Thursday, its lowest point in almost 13 years. Its shares fell 65 cents, or 6.2 percent, to $9.77 in premarket trading Friday.

More in Herald Business Journal

Amazon lists 20 finalists for HQ2, and no, we aren’t on it

Los Angeles was the only West Coast city listed. They seem to like the nation’s capital.

Exotic animals find compassionate care in Bothell (video)

At the Center for Bird and Exotic Animal Medicine, vets treat snakes, hedgehogs and even kangaroos.

Don’t take economic forecasts to the bank — or the casino

Air travel delays could spur a rebirth of passenger rail service.

Emirates orders 20 more Airbus A380 jumbos, saving program

The Dubai carrier also has options to buy 16 more. The program seems safe until 2029.

How do you retrieve an errant Boeing 737 from a muddy slope?

Turkish authorities used cranes to lift a plane that skidded off a runway.

Amanda Strong (left) tries on an Angel of the Winds Arena hat as she and Courtney Brown hand out gift bags after the renaming ceremony Dec. 13 in Everett. The new name replaces the Xfinity name. (Andy Bronson / Her file)
Angel of the Winds to break ground on $60M casino expansion

“We think we’re on the cusp of becoming a major resort.”

House passes bill aimed at lowering gender wage gap

The bill would hinder employers from retaliating against female workers who ask about others’ pay.

Planemaker joins forces with auto-industry supplier Adient

The new venture poses a threat to Zodiac Aerospace and Rockwell Collins

In this Dec. 20, 2017, photo, a clerk reaches to a shelf to pick an item for a customer order at the Amazon Prime warehouse, in New York. (AP Photo/Mark Lennihan, File)
Amazon’s potential HQ2 sites leaves many cities disappointed

Associated Press Amazon’s move to whittle its list for a second headquarters… Continue reading

Most Read