JCPennyless Announces $9.65/Share Public Offering Price

It's official: the absolute wreck of a soon to be insolvent retailer that is JCPennyless, has just announced the pricing of its 84 million shares (thank you Goldman Sachs), and the price is $9.65.

"J. C. Penney Company, Inc. (JCP) (the "Company") announced today that the previously announced underwritten public offering of 84.0 million shares of its common stock priced to the public at $9.65 per share.  The Company intends to use the net proceeds from the offering for general corporate purposes.  The offering is expected to close on October 1, 2013, subject to certain customary conditions.

 

The Company has granted the underwriters a 30-day option to purchase up to an additional 12.6 million shares of common stock.  The Company`s common stock is listed on the New York Stock Exchange under the symbol "JCP."

 

Goldman, Sachs & Co. served as the sole book-running manager for the offering."

Putting this into context, this offering price is 25% below the $12.90 price at which Bill Ackman dumped his entire stake a month ago to even more clueless "investors", and about 26% below the $13/share price at which Vornado sold its entire stake last Friday.

Existing shareholders: congratulations, you just got diluted by 44% (with the full overallotment), but at least you get to enjoy your misery for a few more months as the melting icecube of a company does what it does best: continues melting.