Insights

Choate Represents Simon Property Group and Brookfield Asset Management Joint Venture in Financing the Acquisition of J.C. Penney

Choate represented a joint venture between Simon Property Group, L.P. and Brookfield Asset Management Inc. (collectively, the “Sponsors”) in connection with the Sponsors’ acquisition of substantially all of the retail and operating assets of J.C. Penney Company, Inc. and certain of its subsidiaries via a Section 363 sale under the Bankruptcy Code. The Sponsors financed the transactions, in part, with the proceeds of a $2,000,000,000 asset-based revolving credit facility from a syndicate of lenders led by Wells Fargo Bank, National Association, and a $300,000,000 first-in-last-out term loan facility from a syndicate of lenders led by Pathlight Capital LP. In addition to funding a portion of the transactions, the credit facilities will be used to finance J.C. Penney’s working capital needs and for general corporate purposes.