Sears Holdings Corporation Announces Intention To Obtain A $1.0 Billion Senior Secured Term Loan Facility

Sep 16, 2013, 06:00 ET from Sears Holdings Corporation

HOFFMAN ESTATES, Ill., Sept. 16, 2013 /PRNewswire/ -- Sears Holdings Corporation (NASDAQ: SHLD) today announced that it has provided notice to the administrative agent under the Company's existing Second Amended and Restated Credit Agreement, dated as of April 8, 2011 (the "Existing Credit Agreement"), that the Company intends to obtain a senior secured term loan facility of up to $1.0 billion (the "Incremental Term Loan").  If consummated, the Incremental Term Loan would be issued under the Existing Credit Agreement, which currently provides for a $3.275 billion asset-based revolving credit facility (the "Revolving Facility").  The Company intends to use the net proceeds of the Incremental Term Loan to reduce borrowings under the Revolving Facility.  The Incremental Term Loan is subject to obtaining lender commitments, as well as market and other conditions. 

The Incremental Term Loan is expected to be secured by a first lien on the same collateral as the Revolving Facility, guaranteed by the same subsidiaries of the Company that guarantee the Revolving Facility, to have a maturity date of June 2018 and to include other terms customary for similar term loans.

Forward-Looking Statements

This press release contains forward-looking statements about our intention to obtain the Incremental Term Loan. 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.

About Sears Holdings Corporation

Sears Holdings Corporation (NASDAQ: SHLD) is a leading integrated retailer with almost 2,500 full-line and specialty retail stores in the United States and Canada and the home of SHOP YOUR WAY, a social shopping experience where members have the ability to earn points and receive benefits across a wide variety of physical and digital formats through ShopYourWay.com. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, fitness equipment and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, with a broad apparel offering, including such well-known labels as Lands' End, the Kardashian Kollection, Jaclyn Smith and Joe Boxer, as well as Sofia by Sofia Vergara and The Country Living Home Collection. We are the nation's largest provider of home services, with more than 14 million service and installation calls made annually, and have a long-established commitment to those who serve in the military through initiatives like the Heroes at Home program. We have been named the 2011 Mobile Retailer of the Year, Recipient of the 2013 ENERGY STAR® "Partner of the Year - Sustained Excellence Award" for Product Retailing and Energy Management and one of the Top 20 Best Places to Work for Recent Grads. 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. Twitter: @searsholdings || Facebook: http://www.facebook.com/SHCCareers.

SOURCE Sears Holdings Corporation

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