J.C. Penney: Mixed Results in IIIQ 2019 Results

Troubled J.C. Penney raised its 2019 projected results, according to a news report on November 15, 2019. At the same time, same store sales continue to trend downward, and were even worse than expected. Glass half full or glass half empty ?

Interestingly, BDC exposure has increased in the IIIQ 2019 to $18.4mn, from $6.8mn. As so often happens in these troubled retail situations TPG Specialty (TSLX) has stepped up to lend more money in an asset-based loan to the company. TSLX has advanced $15.0mn and the rest is spread – in different facilities – over 3 FS-KKR non-traded BDCs: FSIC II, FSIC II and FSIC IV. All the BDCs involved mark their debt at or above par.

We’ll see in 2020 – following the critical 2019 Christmas season – whether this optimism is warranted.