George Soros heavy bid for JC Penney sets stock to rocket

Billionaire George Soros has reported a 7.9 percent passive stake in JC Penney Company, Inc. (NYSE:JCP), according to a SEC filing. At last trading average of 15.20 dollars, his investment is worth something near 265 million dollars. Shares

rocketed on the wake of the news.

George Soros has hence joined fellow hedge-fund manager Bill Ackman as one of the reference investors for the struggling retailer, sending across a message of hope that boosted stock. Soros is now the fourth-largest shareholder in the company, according to Bloomberg, and has taken a passive stake.

JC Penney shares surged on the news in after-hours trading, rising more than 7 percent. The rally continued Friday, with shares jumping nearly 9 percent in premarket trading.

Stock rallies on the news

The stock gained over 11.5 percent Friday following news late Thursday that hedge fund mogul George Soros has taken a large stake in the retailer, and a report from CNBC Friday afternoon that Goldman Sachs has allegedly secured 1.75 billion dollars in financing for the company.

Earlier this month, the troubled retailer announced that CEO Ron Johnson was leaving the company after just a year and a half.

Johnson, a former Apple executive, saw the company’s shares plummeting by 28 percent in the fourth quarter from a year earlier. Soon afterwards, JC Penney tapped Mike Ullman, Johnson's predecessor as CEO, to take the reins once more. The company has since consulted with investment firm Blackstone in an attempt to raise up to 1 billion dollars and remain solvent, reported earlier this week CNBC.

Secures debt financing

In another stance, JC Penney has just announced that it entered into a commitment letter with lenders to provide the company with a five-year 1.75 billion dollars senior secured term loan facility.

According to the official communication, proceeds may be used to fund on-going working capital requirements and other general corporate purposes and to amend, acquire or satisfy and discharge the retailer’s outstanding 7.125 percent notes due 2023.