CSFB, Morgan Shop J.C. Penney

  • 21 Apr 2002
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J.P. Morgan and Credit Suisse First Boston launched syndication of a $1.5 billion asset-based refinancing for J.C. Penney & Co. last Tuesday, pitching yet another asset-based deal into the market. Pricing on the three-year BBB-/Ba2 credit is LIBOR plus 13/ 4%, while there is a 1/2% commitment fee. The credit refinances a $1.5 billion unsecured revolver. Asset-based lending has seen a huge rise in the last year as banks seek more security and cash-flow projections remain uncertain, said one banker. Investors also need to put cash to work and there has been a shortage of leveraged loan deals.

The deal was launched after Vanessa Castagna, executive v.p and chief operating officer of J.C. Penney Stores, Catalog and Internet, said in a presentation to analysts that it expects sales to rise 5-6% in the first quarter at stores open for at least a year. The company's goal is 2% annual same-store sales growth from 2002 to 2005. The optimistic view comes after J.C. Penney suffered a string of poor results. The retail chain has eliminated 41,000 jobs over the last two years through store closings and centralized purchasing. A J.P. Morgan spokesman declined to comment and officials at CSFB did not return calls. Robert Cavanaugh, executive v.p. and cfo of J.C. Penney, did not return calls.

  • 21 Apr 2002

New! GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 7,029 20 10.95
2 Bank of America Merrill Lynch (BAML) 6,703 19 10.45
3 JP Morgan 4,776 10 7.44
4 Credit Suisse 4,718 9 7.35
5 Deutsche Bank 4,262 13 6.64

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Oct 2016
1 Wells Fargo Securities 67,591.81 167 11.54%
2 Bank of America Merrill Lynch 57,568.62 162 9.83%
3 JPMorgan 55,390.36 159 9.46%
4 Citi 55,051.46 160 9.40%
5 Credit Suisse 43,756.73 120 7.47%