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J.C. Penney completes debt tender offer


Plano, Texas J.C. Penney Co. announced Tuesday the successful completion of its debt tender offer.

The company said that it and its wholly owned subsidiary, J.C. Penney Corp., accepted for purchase $104,440,000 principal amount of outstanding 8% notes due March 1, 2010, which were validly tendered pursuant to the previously announced cash tender offer to purchase up to $200 million aggregate principal amount of the notes.

By using cash on hand to repurchase and retire this debt early, the company expects to reduce its interest expense for 2009 by approximately $4 million.

“The successful completion of our debt tender offer will reduce interest expense and further exemplifies J.C. Penney’s commitment to improving the company’s capital structure,” stated Robert Cavanaugh, executive VP and CFO. “We believe that the level of participation in the offer reflects the confidence that the investment community places on our financial strength and flexibility to support our long-range plan for industry growth and leadership.”

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