JCPenney (JCP) in Talks for $1B Asset-Backed Loan

JCPenney (NYSE: JCP) is ticking higher Friday morning following reports that the beleaguered retailer may put up real estate as collateral as it works to secure financing.

Reports have JCPenney in discussions with Goldman Sachs and JPMorgan for an asset-backed loan up to $1 billion. A deal could be reached by the end of the month, said sources.

Last week, it was said that JCPenney is in talks for a $500 million term loan secured by inventory, with JCPenney announcing that it tapped a revolving facility for about $850 million to maintain flexibility.

This new loan will be either inventory- or real estate-backed, but not both. The current revolver has about $1 billion left.

JCPenney could also move into a sale-leaseback of assets, where it would become tenant versus owner.

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