Sears takes out $1 billion in term loans

Sears Holdings Corporation announced that its wholly owned subsidiaries, Sears Roebuck Acceptance Corp. and Kmart Corporation, have taken out a $1.0 billion loan.

The incremental term loan was enacted under a new senior secured term loan facility under the company's existing credit agreement, titled Second Amended and Restated Credit Agreement dated April 8, 2011. The agreement continues to provide for a $3.275 billion asset-based revolving credit facility.

The net proceeds of the loan were used to reduce borrowings under the revolving facility, resulting in borrowings outstanding under the revolving facility of approximately $1.0 billion.

The loan matures in June 2018, while the revolving facility remains scheduled to expire on April 8, 2016.

Sears ranks third on the 2013 HCN Retailer Scoreboard, with estimated home improvement sales of $16.4 billion. 

Login or Register to post a comment.