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Gordon Brothers Finance Company Closes $40MM Term Loan for Sears Hometown and Outlet Stores

February 22, 2018, 07:09 AM
Filed Under: Retail

Sears Hometown and Outlet Stores, Inc. announced that its three operating subsidiaries, Sears Authorized Hometown Stores, LLC, Sears Home Appliance Showrooms, LLC, and Sears Outlet Stores, L.L.C., and the Company, as guarantor, have entered into a $40 million Term Loan Credit Agreement with Gordon Brothers Finance Company, as Agent, and Gordon Brothers Finance Company, LLC, as Lender.  The Term Loan, which is secured by a second lien on the Company’s inventory, credit card receivables, and specified other assets, has a five-year term (subject to conditions).  The Company used the proceeds of the Term Loan to pay down borrowings under the Company’s Amended and Restated Credit Agreement dated as of November 1, 2016.  

Will Powell, President and Chief Executive Officer, commented, “We are excited to get this Term Loan in place.  We believe it will provide us with financial flexibility to make investments in warehouse inventory with the numerous direct purchasing relationships we have established with leading manufacturers such as Whirlpool, Samsung, GE, Husqvarna, and Stanley, Black & Decker.  We expect these direct purchasing relationships, in turn, will enable us to continue to provide our customers with access to the leading brands in home appliances, lawn and garden, and tools while maintaining the outstanding customer service for which we are known in the communities we serve.”

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