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Sears Holdings borrows $60 million more under loan agreement at 11%
By Angela McDaniels
Tacoma, Wash., Oct. 30 – Sears Holdings Corp. drew the remaining $60 million available under its second amended and restated loan agreement, according to an 8-K filing with the Securities and Exchange Commission.
The company borrowed $100 million under the credit agreement on Oct. 4 and had the option to draw up to an additional $100 million prior to Dec. 1. It drew $40 million of that additional $100 million on Oct. 18 and the remaining $60 million on Wednesday.
The $200 million of loans borrowed in October mature on the later of (a) April 23, 2018 and (b) the earlier of the date the loans under the company’s loan agreement with JPP, LLC, JPP II, LLC and Cascade Investments, LLC are repaid in full and the maturity date of the loans under the JPP/Cascade loan agreement. All other loans drawn under the credit agreement continue to mature on July 20, 2020.
The $200 million of loans have an interest rate of 11%, payable monthly, and the company paid no upfront or funding fees.
After giving effect to the $200 million of loans, the aggregate principal amount outstanding under the loan agreement is $569.5 million.
All of the loans under the loan agreement are guaranteed by Sears Holdings and secured by a first lien on 76 real properties. The $200 million loan is also secured by a second lien on 16 real properties owned by Sears, Roebuck and Co., Kmart Stores of Illinois LLC, Kmart of Washington LLC, Kmart Corp., SHC Desert Springs, LLC, Innovel Solutions, Inc., Sears Holdings Management Corp., Maxserv, Inc., Troy Coolidge No. 13, LLC, Sears Development Co. and Big Beaver of Florida Development, LLC.
Edward Lampert, Sears Holdings’ chief executive officer and chairman, is the sole stockholder, CEO and director of ESL Investments, Inc., which controls JPP and JPP II.
Sears is a retailer based in Hoffman Estates, Ill.
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