Kmart

(KMRT)

says it's doing well enough to cut loose a big credit agreement with

General Electric's

(GE) - Get Report

financing arm.

The retailer, which recently agreed to acquire

Sears

(S) - Get Report

for more than $10 billion, filed notice with regulators late Wednesday that it plans to end the $800 million revolver without penalty after deciding it was no longer cost-effective.

Kmart emerged from bankruptcy under the guidance of money manager Edward Lampert in spring 2003 and has since seen its stock price quintuple. The loan agreement was struck in May 2003 and will formally end on Jan. 3.

The company cited its strong balance sheet, which features $2.5 billion in cash, and said it has only used the facility to support outstanding letters of credit.

Kmart's stock price remains around $100 after listing on the

Nasdaq

post-bankruptcy at under $20. While the company's sales growth still remains a concern, it is now consistently profitable, and its real estate portfolio, proven to be undervalued in the bankruptcy process, has been the subject of exuberant speculation on Wall Street.