Noted Fund Eyes JCPenney (JCP) Turnaround; Takes Unsecured Debt Stake
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JCPenney (NYSE: JCP) is mounting a turnaround. Or, at least some distressed debt investors hope that's what the retailer is doing.
According to Bloomberg, Marc Lasry's Avenue Capital Group was said to invest in JCPenney's unsecured bonds.
Other funds taking a safer approached on the retailer's secured debt include Oaktress Capital and Ares Management. Those to funds are investing in a $2.25 billion term-loan which is backed by JCPenney's inventories and real estate. The bonds are said to trade at 97 cents to the dollar and the funds would have a more senior position in the event of a restructuring.
Selling out was Third Avenue Management, which made the decision when JCPenney opted to take the $2.25 billion loan last May.
JCPenney's unsecured debt generally trades for 72 to 88 cents on the dollar, prices varying depending on different maturities.
Earlier in the week, JCPenney announced that comparable-store sales for the month of October rose 0.9 percent, the first gain for the company since December 2011. The news was good for investors, but the retailer still has a long way to go to shore itself up and erase the stigma that Ron Johnson left behind. Some might also criticize the number for going against easier year-over-year comparisons, making it even more challenging to gain respect from the market.
Shares of JCPenney are up over 1 percent Friday.
According to Bloomberg, Marc Lasry's Avenue Capital Group was said to invest in JCPenney's unsecured bonds.
Other funds taking a safer approached on the retailer's secured debt include Oaktress Capital and Ares Management. Those to funds are investing in a $2.25 billion term-loan which is backed by JCPenney's inventories and real estate. The bonds are said to trade at 97 cents to the dollar and the funds would have a more senior position in the event of a restructuring.
Selling out was Third Avenue Management, which made the decision when JCPenney opted to take the $2.25 billion loan last May.
JCPenney's unsecured debt generally trades for 72 to 88 cents on the dollar, prices varying depending on different maturities.
Earlier in the week, JCPenney announced that comparable-store sales for the month of October rose 0.9 percent, the first gain for the company since December 2011. The news was good for investors, but the retailer still has a long way to go to shore itself up and erase the stigma that Ron Johnson left behind. Some might also criticize the number for going against easier year-over-year comparisons, making it even more challenging to gain respect from the market.
Shares of JCPenney are up over 1 percent Friday.
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