Sears Holdings to secure $1bn 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.

About Sears Holdings Corporation

Sears Holdings Corporation  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