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JCPenney to sell 84 million shares of stock

JCPenney said it will sell 84 million shares of stock in a secondary offering.

Shares fell 5 percent following the news. (What’s the stock doing now? Click here for the latest after-hours quote.)

The retailer said it would use the proceeds for general corporate purposes.

Penney shares fell 15 percent on Wednesday after Goldman Sachs said it expects the retailer’s sales to improve more slowly than expected. The stock rebounded slightly Thursday.

The cost for insurance against a J.C. Penney default has shot back to near record-high levels over the last week.

The company, which has a “CCC ” credit rating from Standard & Poor’s, reflecting a substantial risk in owning its debt, has about $2.6 billion of outstanding bonds.  The company’s benchmark 5-year credit default swap contract price surged by more than 13 percent on Wednesday, according to Markit data.  Read More

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Posted on September 27, 2013, in #business news and tagged , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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