UPDATE: J.C. Penney (JCP) Secures $1.75B Term Loan with Goldman Sachs

April 26, 2013 3:00 PM EDT
(Updated - April 26, 2013 3:22 PM EDT)

JCPenney (NYSE: JCP) has a $1.75 billion loan commitment from Goldman Sachs, according to CNBC's David Faber.

According to data, the loan to JCPenney will be backed with real estate and other assets and is a term loan with a coupon slightly above 7 percent. Last week, speculation was rampant that the retailer would be looking for an asset-backed loan of $1 billion. JPMorgan and Goldman Sachs were said to be mulling the decision.

AlixPartners is also advising JCPenney on ways to enhance cost savings, though no restructuring is planned.

Earlier, JCPenney said the media launch of its home stores would be delayed up to three weeks. That comes following the departure of a Construction segment executive on Tuesday and M) over Martha Stewart Omnimedia (NYSE: MSO) rights.

Shares of JCPenney spiked 11 percent on the news, but have pared some gains since then.

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