On a slightly more encouraging note, when we remember that the old $1.75 billion loan would have provided just enough cash to replace the company's current $850 million line of credit while offsetting its operating losses for the rest of 2013, the extra $500 million should give J.C. Penney a bit more wiggle room if it continues losing money after that point. Putting aside the fact that those continued losses would be bad for shareholders (to put it kindly), Adam also noted that the minimum 6.75% rate on the $1.75 billion loan would have cost J.C. Penney at least $500 million in interest over the next five years. Now, based on the new $2.25 billion principal amount, J.C. Penney's annual net interest expense will increase by almost $133 million, or a total of nearly $670 million over the five-year term of the loan. Of course, this is great for the bottom line of Goldman Sachs, assuming J.C. Penney will be able to repay the loan in full, but there's undoubtedly risk involved for both companies.