H/2 Capital Partners scrapped an auction for J.C. Penney Inc.’s term loan held by the hedge fund after a weak reception from potential buyers, Bloomberg News reported. Bids for H/2’s sale of about half J.C. Penney’s $1.7 billion term loan didn’t meet the seller’s minimum price by Thursday’s deadline. The hedge fund will continue to own its portion of the term loan, and no further auction is scheduled at this time. Deutsche Bank AG was shopping J.C. Penney’s first-lien term loan due in 2023 on behalf of H/2 Capital. The loan was quoted recently around 88 cents on the dollar, according to data compiled by Bloomberg.
