Sears Holdings Announces Amendment, Extension and Size Increase of Revolving Credit Facility

Fri Apr 8, 2011 12:41pm EDT

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Sears Holdings Announces Amendment, Extension and Size Increase of Revolving Credit Facility

PR Newswire

HOFFMAN ESTATES, Ill., April 8, 2011 /PRNewswire/ -- Sears Holdings Corporation (NASDAQ: SHLD) ("we," "us," "our," or the "Company") announced today that we have entered into an amendment to our domestic revolving credit facility (the "Amended Agreement").  The Amended Agreement increases the borrowing capacity of the facility to $3.275 billion from $2.441 billion and extends its maturity date to April 7, 2016 from June 12, 2012.  

The Amended Agreement also revises certain terms of the credit facility.  The amended facility's interest rates will vary based on leverage in the range of LIBOR plus 2.0% to 2.5% (previously LIBOR plus 4.0% with a 1.75% LIBOR floor).  Commitment fees have also been reduced to a range of 0.375% to 0.625% based on usage from the previous range of 0.75% to 1.00%.  

The credit facility continues to include a $1.5 billion sub-limit for letters of credit, provides an accordion feature that allows us to use existing collateral in the facility to obtain up to $1.0 billion of capacity in addition to the $3.275 billion should we so choose, is secured by a first lien on most of our domestic inventory and credit card and pharmacy receivables, and determines availability pursuant to a borrowing base formula.  

The transaction was led by BofA Merrill Lynch, Wells Fargo Capital Finance LLC, and GE Capital Markets, as Joint Lead Arrangers and Joint Book Runners, which collectively committed $1.2 billion, and was supported by many other financial institutions.  Bank of America, N.A. will serve as Administrative Agent for the facility.

About Sears Holdings Corporation

Sears Holdings Corporation is the nation's fourth largest broadline retailer with over 4,000 full-line and specialty retail stores in the United States and Canada.  Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, consumer electronics and automotive repair and maintenance.  Sears Holdings is the 2011 ENERGY STAR® Retail Partner of the Year. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands.  It also has the Country Living collection, which is offered by Sears and Kmart.  We are the nation's largest provider of home services, with more than 11 million service calls made annually.  Sears Holdings Corporation operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation.  For more information, visit Sears Holdings' website at www.searsholdings.com.

SOURCE Sears Holdings Corporation

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