Sears Announces Intention To Obtain $1B Senior Secured Term Loan Facility

Sears Holdings Corporation

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.