S&P further lowers rating on J.C. Penney
New York — Standard & Poor’s Ratings Services is further lowering its credit rating on J.C. Penney Co., attributing the move to a continuing weak performance.
J.C. Penney’s corporate credit rating has been lowered to "B+" from "BB-." The junk rating is four notches below investment grade. The move marks the second downgrade from S&P since mid-May.
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The Pantry announces debt refinancing
Cary, N.C. — The Pantry said Thursday that it is pursuing debt refinancing consisting of up to $480 million of senior secured credit facilities and $250 million aggregate principal amount of senior notes.
The senior secured facilities are expected to consist of a revolving credit facility of up to $225 million to replace the company’s current revolving facility and a $255 million term loan. The company said it intends to use the proceeds from the new term loan and senior notes, together with available cash, to repay its outstanding term loans and senior subordinated notes, the aggregate outstanding amount of which is approximately $598 million.
The Pantry said it expects to complete the transactions during this fiscal year, which ends on Sept. 27.
Refinancing is a really good option. Unfortunately not to many average people know about this option or they simply for some unknown reason fail to trun to it. From one side refinancing is extending your credit period and therefore you overpay more than your original amount would have been. But on the other side it gives some time for reliefe. So it is a definitely good thing that the Pantry decided to go with debt refinancing consisting of up to $480 million of senior secured credit facilities and $250 million aggregate principal amount of senior notes. I hope it will help them a lot. Jason from: http://bit.ly/N1y0Iq
Supervalu Q1 profit plunges, initiates strategic review
Minneapolis — Grocery giant Supervalu Inc. reported Wednesday that profit for the quarter ended June 16 plummeted 45% to $41 million, compared with $74 million in the year-ago period. The struggling parent to Albertsons, Jewel-Osco and Save-A-Lot grocery banners, among others, had begun to show improvement in its fourth quarter, but tumbling revenues have halted the forward momentum.
Sales dropped to $10.59 billion, from $11.11 billion in the same period last year, and missed Wall Street’s forecasted $10.61 billion in revenue.
CEO Craig Herkert, the former Wal-Mart Stores executive who joined the company in 2009 to effect turnaround efforts, said that SuperValu will suspend its dividend and review its options, which he emphasized, do not include bankruptcy. However, although the company has not made an announcement regarding a sale, a strategic review typically involves considering selling the company.
In the meantime, Herkert emphasized that the grocer will enact aggressive price-cutting measures and concentrate on paying down debt and investing in its stores.
"These are bold but necessary moves, which will position Supervalu for success in this increasingly competitive environment," Herkert said in a statement.
Part of the plan calls for cutting capital spending to a range of $450 million to $500 million from $675 million. The company said it still expects to complete approximately 40 store remodels and increase Save-A-Lot’s store count by approximately 40 stores, including licensed locations.
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