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Sears Holdings Announces Intention to Obtain Senior Secured Term Loan Facility

March 04, 2016, 08:01 AM
Filed Under: Retail

Sears Holdings Corporation announced that it has provided notice to the administrative agent under the Company's existing Third Amended and Restated Credit Agreement, dated as of July 21, 2015 (the "Existing Credit Agreement"), that the Company intends to obtain a new senior secured term loan facility of up to $750 million (the "Incremental Term Loan").  If consummated, the Incremental Term Loan would be issued under the Existing Credit Agreement, which currently provides for an existing senior secured term loan in the amount of $980 million maturing in June 2018 and a $3.275 billion asset-based revolving credit facility (the "Revolving Facility"), with $1.304 billion of such Revolving Facility commitments maturing in April 2016 and the balance maturing in July 2020.  The Company intends to use the net proceeds of the Incremental Term Loan to reduce borrowings under the Revolving Facility.  Completion of the Incremental Term Loan is subject to obtaining lender commitments, as well as market and other conditions.

The Incremental Term Loan is expected to be secured by a first lien on the same collateral as the Revolving Facility and the existing term loan, guaranteed by the same subsidiaries of the Company that guarantee the Revolving Facility and the existing term loan, to have a maturity date of July 2020 and to include other terms customary for similar term loans.

Sears Holdings Corporation is a leading integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve our members - wherever, whenever and however they want to shop.

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