HOFFMAN ESTATES, Ill.,
Jan. 4, 2017 /PRNewswire/
-- Sears Holdings Corporation (the "Company") (NASDAQ: SHLD)
announced today that certain of its subsidiaries (the "Borrowers")
have entered into a $500 million
committed secured loan facility (the "Loan Facility") maturing in
July 2020. $321 million was funded under the Loan Facility
today and up to an additional $179
million may be drawn by the Borrowers in the future.
The Loan Facility is secured by mortgages on 46 real properties
owned by the Company's subsidiaries and will be secured by
additional real properties if the remaining $179 million loan commitment is drawn. The Loan
Facility bears interest at a rate of 8% per annum and is guaranteed
by the Company. The Loan Facility is intended to provide the
Company with additional liquidity to fund its operations while it
initiates a process to market and sell a portfolio of its real
estate assets, the proceeds of which would primarily be used to
repay outstanding indebtedness.
"This Loan Facility will provide Sears Holdings with additional
financial flexibility and support our operations as we meet all of
our financial obligations," said Jason M.
Hollar, Sears Holdings' chief financial officer.
Entities affiliated with ESL Investments, Inc. are the lenders
under the Loan Facility. Edward S.
Lampert, the Company's Chief Executive Officer and Chairman,
controls ESL Investments, Inc.
The terms of the Loan Facility were approved by the Related Party
Transactions Subcommittee of the Board of Directors of the Company,
with advice from Centerview Partners and Weil Gotshal & Manges,
the Subcommittee's outside financial and legal advisors.
Forward-Looking Statements
This press release contains
forward-looking statements intended to qualify for the safe harbor
from liability established by the Private Securities Litigation
Reform Act of 1995, including statements about our intention and
ability to obtain the remaining $179
million in advances contemplated by the Loan Facility and
our intention to market and sell real properties and repay
outstanding indebtedness. Forward-looking statements are subject to
risks and uncertainties that may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
these forward-looking statements. Such statements are based upon
the current beliefs and expectations of our management and are
subject to significant risks and uncertainties. Factors that could
cause actual results to differ from those set forth in the
forward-looking statements include, but are not limited to, those
discussed in this release and those discussed in our most recent
Annual Report on Form 10-K and other filings with the Securities
and Exchange Commission. We intend the forward-looking statements
to speak only as of the time made and do not undertake to update or
revise them as more information becomes available, except as
required by law.
About Sears Holdings Corporation
Sears Holdings Corporation (NASDAQ: SHLD) 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. Sears Holdings is home to
Shop Your Way®, a social shopping platform offering
members rewards for shopping at Sears and Kmart as well as with
other retail partners across categories important to them. The
Company operates through its subsidiaries, including Sears, Roebuck
and Co. and Kmart Corporation, with full-line and specialty retail
stores across the United States.
For more information, visit www.searsholdings.com.
NEWS MEDIA CONTACT:
Sears Holdings Public
Relations
(847) 286-8371
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SOURCE Sears Holdings Corporation