Penney's Gets $1.75 Billion Loan Offer

Apr 29 2013 | 3:10pm ET

Pershing Square Capital Management's William Ackman is staking J.C. Penney's future on its real-estate.

Ackman is currently weighing a $1.75 billion loan commitment from Goldman Sachs, secured by a "significant" portion of its real-estate. The five-year loan would have an interest rate of about 6.5%, despite J.C. Penney's junk rating.

Barclays Capital is expected to make a competing offer next week, giving Ackman and Penney their choice of financing, the New York Post reports.

Pershing Square is Penney's largest shareholder. Last week, George Soros became the retailer's fourth-largest shareholder.


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