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HOFFMAN ESTATES, Ill.,
Oct. 2, 2013 /PRNewswire/ -- Sears Holdings Corporation (NASDAQ: SHLD) today announced that its wholly owned subsidiaries Sears Roebuck Acceptance Corp. and Kmart Corporation have borrowed
$1.0 billion under a new a senior secured term loan facility (the "Incremental Term Loan") under the Company's existing Second Amended and Restated Credit Agreement, dated as of
April 8, 2011 (the "Existing Credit Agreement"). In addition to the Incremental Term Loan, the Existing Credit Agreement continues to provide for a
$3.275 billion asset-based revolving credit facility (the "Revolving Facility").
The Company can elect for the Incremental Term Loan to bear interest at a rate of LIBOR (subject to a 1.00% floor) plus a margin of 4.50%, or at a "base rate" plus a margin of 3.50%. The Incremental Term Loan is secured by the same collateral as the Revolving Facility on a
pari passu basis with the Revolving Facility and guaranteed by the same subsidiaries of the Company that guarantee the Revolving Facility, and matures in
June 2018. The Revolving Facility continues to be scheduled to expire on
April 8, 2016.
The net proceeds of the Incremental Term Loan were used to reduce borrowings under the Revolving Facility, which resulted in borrowings outstanding under the Revolving Facility of approximately
This press release contains forward-looking statements about our domestic credit facility. 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.