J.C. Penney Co. Inc. (NYSE: JCP) tried to calm the markets earlier today when the company indicated that same-store sales patterns were improving. Anyone who invested in the shares later in the day as they rallied was played for a sucker. After the market closed, the retailer announced it would sell 84 million shares, which crushed the prices, again, and pushed it down 5% to $9.90 after hours.
The press release:
PLANO, Texas, Sep 26, 2013 (BUSINESS WIRE) — J. C. Penney Company, Inc. announced today that it has commenced an underwritten public offering of 84.0 million shares of its common stock. The Company intends to use the net proceeds from the offering for general corporate purposes.
The Company intends to grant 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. is serving as the sole book-running manager for the offering.
The shares of common stock will be issued pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (“SEC”). Copies of the preliminary prospectus supplement and the accompanying prospectus related to the offering may be obtained from (i) Goldman, Sachs & Co., via telephone: 1-866-471-2526, email: email@example.com, or standard mail at Goldman, Sachs & Co., 200 West Street, New York, NY 10282. A preliminary prospectus supplement related to the offering also will be available free of charge on the SEC’s website at http://www.sec.gov. Investors should read these documents for more complete information prior to investing.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.