January 10, 2018 / 12:13 PM / a month ago

BRIEF-Sears Holdings Announces Plan To Enhance Liquidity And Accelerate Return To Profitability

Jan 10 (Reuters) - Sears Holdings Corp:

* SEARS HOLDINGS ANNOUNCES PLAN TO ENHANCE LIQUIDITY AND ACCELERATE RETURN TO PROFITABILITY

* RAISED $100 MILLION IN NEW FINANCING

* HAS ALSO INITIATED SERIES OF FINANCIAL TRANSACTIONS TO RAISE AN INCREMENTAL $300 MILLION IN NEW LIQUIDITY

* PURSUES AN ADDITIONAL $200 MILLION​ IN NEW FINANCING

* SEARS HOLDINGS - AMENDED SECOND LIEN NOTES, MATURING OCTOBER 15, 2018, TO INCREASE BORROWING BASE ADVANCE RATE FOR INVENTORY, RESTART WITH Q2 OF 2018

* SEARS HOLDINGS -‍​ PROGRESSING DISCUSSIONS ON ADDITIONAL TRANSACTIONS TO “ENHANCE LIQUIDITY AND STRENGTHEN BALANCE SHEET”

* OUTLINED INCREMENTAL ACTIONS TO FURTHER STREAMLINE OPERATIONS TO DRIVE PROFITABILITY

* SEARS HOLDINGS - ACTIONS TO STREAMLINE OPERATIONS INCLUDE COST REDUCTIONS OF $200 MILLION ON ANNUALIZED BASIS IN 2018 UNRELATED TO STORE CLOSURES

* SEARS HOLDINGS - AMENDED BORROWING BASE RELATING TO ITS SECOND LIEN NOTES, MATURING OCT 15, TO CHANGE ADVANCE RATE FOR INVENTORY TO 75% FROM 65%

* ADJUSTED EBITDA IS EXPECTED TO BE BETWEEN NEGATIVE $10 MILLION TO NEGATIVE $70 MILLION FOR Q4 OF 2017

* - EXPECT NET LOSS ATTRIBUTABLE TO SEARS HOLDINGS’ SHAREHOLDERS OF BETWEEN $320 MILLION AND $200 MILLION IN Q4 OF 2017

* COMPARABLE STORE SALES AT SEARS AND KMART FOR FIRST TWO MONTHS OF Q4 OF 2017 HAVE DECLINED IN RANGE OF 16%-17%

* SEARS HOLDINGS - CONTINUING TO PURSUE SECURED CREDIT FACILITY, CONSISTING OF ABOUT $407 MILLION FIRST LIEN TRANCHE, SECOND LIEN TRANCHE OF UP TO $200 MILLION

* SEARS HOLDINGS - WILL CONTINUE TO EVALUATE PRODUCTIVITY OF ITS KMART AND SEARS STORES

* COMPARABLE STORE SALES AT SEARS AND KMART FOR FIRST TWO MONTHS OF Q4 OF 2017 HAVE DECLINED IN RANGE OF 16%-17%

* SEARS HOLDINGS-EXCLUDING REDUCTIONS IN NUMBER OF PHARMACIES AND CONSUMER ELECTRONICS, COMP SALES DECLINED 14%-15% FOR FIRST TWO MONTHS OF Q4

* “WILL CONTINUE TO EVALUATE STRATEGIC OPTIONS TO UNLOCK VALUE FROM ITS REAL ESTATE PORTFOLIO” Source text for Eikon: Further company coverage:

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