While Penney has a hefty mound of debt on its books — with long-term debt of $3.8 billion and quarterly interest expenses of $73 million, as of Q1 — Boni and her team note the retailer still has ample liquidity as it tries to turn its performance around. Specifically, Penney has $171 million in cash and $1.6 billion available under revolving credit agreements, according to Moody’s. That at least can potentially help the company buy time and keep it out of default in the short term.
