Sears closes $300 million term loan due 2020 at Libor plus 750 bps

By Marisa Wong

Morgantown, W.Va., Sept. 2 – Sears Holdings Corp. entered into a second-lien credit agreement for a $300 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

JPP, LLC is the administrative agent. Edward S. Lampert, Sears’ chief executive officer and chairman, is the sole stockholder, chief executive officer and director of ESL Investments, Inc., which controls JPP.

The secured term loan was drawn at closing on Sept. 1. The company expects to use the loan proceeds for general corporate purposes.

The term loan matures on July 20, 2020 and will not amortize.

The credit agreement includes an up to $200 million accordion feature.

Interest is equal to Libor plus 750 basis points, subject to a 1% Libor floor.

Sears is a Hoffman Estates, Ill.-based retailer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.