Boston, MA 09/23/2014 (wallstreetpr) – A chain of retail company, J C Penney Company Inc (NYSE:JCP) disclosed that it has increased the maximum tender amount it was offering to buy in the tender offer. However, the company has added caps for the different tender notes due in the next two years.
Lifts Tender Amount
J C Penney Company Inc (NYSE:JCP) stated that it has lifted the aggregate principal amount of the securities that it was planning to buy through the tender offer to $325 million from $300 million indicated by it earlier, according to its statement. The withdrawal from the tender offer closed on September 22 for the approximately $448 million aggregate principal amount of securities that was valid tendered and not withdrawn.
J C Penney also announced a cap on the 6.875% Medium-Term Notes due next year and the 7.65% debentures due in 2016. Accordingly, tender cap has been fixed at $140.00 million and $120.00 million respectively for these two securities. For the 7.95% debentures due in 2017, J C Penney Company Inc (NYSE:JCP) has put a cap of $100 million.
J C Penney Company Inc (NYSE:JCP) received $138.576 million for the notes due next year, while it got $117.174 million for the debentures due in 2016. However, for the debentures due in 2017, it has received $192.584 million. In terms of percentage of outstanding tendered amount, it represented 69.29% of its Medium-Term Notes, 58.6% of Debentures due in 2016, and 67.49% of Debentures due in 2017.
Payment For Securities
J C Penney Company Inc (NYSE:JCP) said that payment for accepted securities following its tender offers would be made after the expiration date. The holders of securities would be eligible to get the applicable total consideration, including early tender premium of $30 for every $1,000 principal amount of securities.
The securities holders, who tender their notes after the early tender date but before the expiration date, would be able to get the applicable base consideration of $1,000 principal amount of securities.
J C Penney Company Inc (NYSE:JCP) indicated that securities holders would be paid unpaid and accrued interest from the last payment of interest date for the securities tendered through the offer till the applicable settlement date.
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