Insights

JCPenney Refinances ABL and FILO Facilities

Choate advised JCPenney in connection with JCPenney’s incurrence of $2.25B in senior secured asset-based credit facilities, consisting of (i) a $1.75B revolving credit facility and a $160M last-out term loan facility, and (ii) a $340M term loan facility. The new credit facilities replace $2.3B in asset-based credit facilities established in connection with JCPenney’s exit from bankruptcy in December 2020. The new asset-based credit facilities were incurred in connection with a refinancing of an approximately $500M take-back term loan facility incurred as part of the December 2020 bankruptcy exit transactions. JCPenney is one of the nation’s largest retailers of apparel, home, jewelry, and beauty merchandise.