Rumors about the financing had begun to circulate Friday. J.C. Penney shares were up 2.2 percent, to $17.38, in morning trade, although that remains well below the stock's 52-week high of $36.89.
The five-year senior secured term loan can be used to fund the company's operations as well as pay off some of its debt. It will be secured by real estate, as well as an interest the company's other assets and some of its subsidiaries.
The company has been burning through cash. Last week, it said it would draw $850 million from its $1.85 billion revolving credit line.
The retailer's shares also got a boost last week when investor George Soros disclosed in a regulatory filing that he has taken a 7.9 percent stake in the company.
J.C. Penney, based in Plano, Texas, fired CEO Ron Johnson this month after his ambitious turnaround plan backfired and caused sales to plummet.