J.C. Penney Co. has amended its bank credit facility to increase its borrowing capacity as it looks to finance its multiyear transformation.
The department store chain said Tuesday it expanded the credit facility to $1.85 billion and got an option to increase that by another $400 million.
Penney’s previous facility had $1.75 billion of borrowing capacity, according to Deborah Weinswig of Citi Investment Research.
The Plano, Texas, retailer said that the increase enhances its liquidity and provides it with additional financial flexibility to support its transformation.
Late last year, the chain started rolling out shops within its stores and plans to carve up its stores into 100 specialty shops by late 2015.