Ryan Robinson, Chief Administrative Officer and Chief Financial Officer, said, "We are pleased to announce the launch of the Amended and Restated Credit Agreement. The agreement provides financial flexibility to continue to pursue our business and operating strategies including our America's Appliance Experts® ('AAE') program, merchandise assortment improvements, and our IT transformation project. The financing provides substantial liquidity to finance the business for several years." As of the closing date, the Company had $91.9 million of loans and $133.5 million of availability.The Extended Revolving Credit Commitments will mature on the earlier of (1) February 29, 2020 and (2) six months prior to the expiration of certain contracts entered into with Sears Holding Corporation, unless such agreements are extended to a date later than February 29, 2020 or terminated on a basis reasonably satisfactory to the administrative agent. The Non-Extended Revolving Credit Commitments will mature on the earlier of (1) October 11, 2017 and (2) six months prior to the expiration of certain contracts entered into with Sears Holdings Corporation, unless such agreements are extended to a date later than October 11, 2017 or terminated on a basis reasonably satisfactory to the administrative agent. The Amended and Restated Credit Agreement is secured by a first lien security interest on substantially all the assets of the Company and its subsidiaries, other than intellectual property and owned real estate. The Amended and Restated Credit Agreement includes a number of affirmative and negative covenants and customary events of default. In addition, upon excess availability falling below a certain level, the Company is required to comply with a minimum fixed charge coverage ratio. This description is qualified in its entirety by reference to the Amended and Restated Credit Agreement and the related Amended and Restated Guaranty and Security Agreement, copies of which are attached to a Form 8-K filed today with the Securities and Exchange Commission.
About Sears Hometown and Outlet Stores, Inc.Sears Hometown and Outlet Stores, Inc . (NASDAQ: SHOS) is a national retailer primarily focused on selling home appliances, lawn and garden equipment, tools and hardware. As of July 30, 2016, Sears Hometown and Outlet Stores, Inc. and its dealers and franchisees operated 1,123 stores across all 50 states as well as in Puerto Rico and Bermuda. In addition to merchandise, Sears Hometown and Outlet Stores, Inc . provide consumers with access to a full suite of services, including home delivery, installation and extended service contracts. Operating through two segments—the Sears Hometown and Hardware segment and the Sears Outlet segment—Sears Hometown and Outlet Stores, Inc. and its subsidiaries offer franchise and dealership opportunities focused on selling, as applicable, top brand home appliances, hardware, tools, lawn and garden equipment and outlet merchandise. For more information about Sears Hometown & Outlet Stores, Inc., visit www.shos.com. To learn about the opportunity to own and operate a store format, visit www.ownasearsstore.com. For more information contact: Jayne Levy, Fishman Public Relations, at (847) 945-1300 or firstname.lastname@example.org or visit the corporate website at www.shos.com.