Belk’s Loan Jumps on Report of Potential Merger With J.C. Penney

July 28, 2020, 3:05 PM

Debt tied to Sycamore Partners ’s department store Belk Inc. rallied on Tuesday following reports of the private equity firm looking at a potential merger with bankrupt J.C. Penney.

  • Department store chain’s term loan due 2025 rose 12.25 cents on the dollar to ~50 cents, according to trading data compiled by Bloomberg
    • Loan was quoted between 37 and 39 cents before the report, according to people familiar with the pricing
  • NOTE: Sycamore’s plan would involve re-branding J.C. Penney stores to Belk stores in markets where the two retailers don’t overlap; the rest of the J.C. Penney locations would be liquidated, ...

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