-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UJKDDGpKgelDrZdDqhacBfhIx+1Qd8GWHpXSGWYiViIMngg1riILJ9uVFZkXGnfn zSE5X/M5G1foPVhIR6SrAg== 0000077182-99-000016.txt : 19991103 0000077182-99-000016.hdr.sgml : 19991103 ACCESSION NUMBER: 0000077182-99-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991018 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991102 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENNEY J C CO INC CENTRAL INDEX KEY: 0000077182 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DEPARTMENT STORES [5311] IRS NUMBER: 135583779 STATE OF INCORPORATION: DE FISCAL YEAR END: 0126 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-00777 FILM NUMBER: 99739153 BUSINESS ADDRESS: STREET 1: 6501 LEGACY DR CITY: PLANO STATE: TX ZIP: 75024-3698 BUSINESS PHONE: 9724311000 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) - October 18, 1999 J. C. PENNEY COMPANY, INC. (Exact name of registrant as specified in its charter) Delaware 1-777 13-5583779 (State or other jurisdiction (Commission (IRS Employer of incorporation) File No.) Identification No.) 6501 Legacy Drive Plano, Texas 75024-3698 (Address of principal (Zip code) executive offices) Registrant's telephone number, including area code: (972) 431-1000 Item 5. Other Events. ______ ____________ On October 18, 1999, J. C. Penney Company, Inc. ("JCPenney") issued a press release announcing that it had entered into an agreement with General Electric Capital Corporation ("GE Capital") pursuant to which JCPenney would sell to GE Capital substantially all of the assets relating to JCPenney's consumer and commercial private label credit card business. The closing of the transaction is subject to regulatory approval. The press release describing the transaction is incorporated by reference herein to Exhibit 20.1 hereto. Item 7. Financial Statements and Exhibits. ______ _________________________________ (c) Exhibits. 20.1 J. C. Penney Company, Inc. press release dated October 18, 1999. SIGNATURES __________ Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. J. C. PENNEY COMPANY, INC. /s/ D. A. McKay ________________________________________ D. A. McKay Executive Vice President and Chief Financial Officer Date: November 1, 1999 EXHIBIT INDEX Exhibit Number Description ______ ___________ 20.1 J. C. Penney Company, Inc. press release dated October 18, 1999. EX-20.1 2 NEWS RELEASE JCPENNEY NEWS RELEASE CONTACT Duncan Muir Stephen Blum Eli Akresh Public Relations Investor Relations Investor Relations (972) 431-1329 (972) 431-5469 (972) 431-2207 JCPENNEY ALIGNS WITH GE CAPITAL TO MARKET AND OPERATE JCPENNEY CREDIT CARD Completes First Step of Plan to Enhance Stockholder Value PLANO, TX, October 18, 1999 - J.C. Penney Company, Inc.(JCP:NYSE) today announced it has completed the first step of a previously announced plan to enhance stockholder value whereby GE Card Services, a GE Capital company, will acquire JCPenney's private label credit card accounts receivable portfolio and credit facilities. In addition, JCPenney will enter into a ten-year agreement with GE Capital to provide private label credit card services. This move will strengthen the competitiveness and appeal of the JCPenney credit card, and at the same time, the sale of the accounts receivable portfolio will enable the Company to significantly reduce debt. James E. Oesterreicher, chairman and chief executive officer of JCPenney said, "By selling the receivables portfolio, we will free up substantial cash to reduce debt, strengthen our balance sheet and pave the way for our previously announced creation and initial public offering ("IPO") of approximately 20 per cent of a tracking stock covering JCPenney's Eckerd Drugstore business. In addition, our customers will continue to receive the high level of service they're accustomed to, and now, together with GE Capital, we will provide more benefits for shopping with our exclusive card. The JCPenney card will be a stronger future business driver because it will provide our customers with added incentives for its use, including more features than we now offer." "We'll work together with JCPenney so customers can get more from their JCPenney credit card, more benefits and new ways to use the card," said Edward D. Stewart, president and CEO, GE Card Services. "The JCPenney card will be strengthened with expanded promotional offers to customers, more favorable repayment terms, a multimillion dollar relaunch and on line support for all JCPenney products and services. From a business standpoint, this acquisition fits perfectly with GE Card Services' expertise managing and marketing private label credit card programs to strengthen customer relationships for retail partners." Public Relations J. C. Penney Company, Inc., 6501 Legacy Drive, Plano Texas 75024 Terms of the agreement were not disclosed. The transaction, subject to regulatory approval, is expected to close in the fourth quarter. Following the transaction, the Company expects to reduce approximately $3.8 to $4.0 billion of debt. In 1998, JCPenney had credit card sales of $7.8 billion and 35 million accounts. The company has 11 credit facilities, with approximately 2,800 employees, in 10 U.S. cities and Puerto Rico. Upon closing, GE Capital will operate these facilities with existing personnel and evaluate the resources and facilities needed to support its business in the future. GE Card Services, which has 70 million private label credit card accounts on file, is a GE Capital company. With assets of more than US$300 billion, GE Capital is a global, diversified financial services company with 28 specialized businesses. A wholly owned subsidiary of General Electric Company, GE Capital, based in Stamford, Conn., provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer services, such as car leasing, home mortgages and credit cards, to businesses and individuals around the world. GE is a diversified manufacturing, technology and services company with operations worldwide. J. C. Penney Company, Inc. is one of America's largest department store, drugstore, and catalog retailers employing more than 260,000 associates. The Company operates nearly 1,150 JCPenney department stores in all 50 states, Puerto Rico, and Mexico. In addition, the Company operates 23 Renner department stores in Brazil. Eckerd Drugstores is comprised of nearly 2,900 drugstores located in the Southeast, Sunbelt, and Northeast regions of the U.S. JCPenney Catalog, including e-commerce, is the nation's largest catalog merchant of general merchandise. JCPenney Direct Marketing Services markets insurance products and membership services to various credit card customers by direct response solicitations primarily in the United States and Canada. This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements, which reflect the Company's current views of future events and financial performance, involve known and unknown risks and uncertainties that may cause the Company's actual results to be materially different from planned or expected results. Those risks and uncertainties include but are not limited to, competition, consumer demand, seasonality, economic conditions, and government activity, and the Year 2000 compliance readiness of JCPenney's suppliers and service providers as well as government agencies. Investors should take such risks into account when making investment decisions. # # # -----END PRIVACY-ENHANCED MESSAGE-----