Sears completes $2.4 billion asset-based revolver due in June 2012

By Sara Rosenberg

New York, May 21 - Sears Holdings Corp. closed on a $2.4 billion asset-based revolving credit facility due June 22, 2012 on Thursday, according to a news release.

Bank of America, Wells Fargo Retail Finance and GE Capital Markets acted as the joint lead arrangers and bookrunners, and collectively committed $1.2 billion to the deal.

Pricing on the revolver is Libor plus 400 basis points with a 1.75% Libor floor and a 100 bps unused fee.

As was previously reported, the company was looking to extend as much of its existing $4 billion asset-based revolver that is due in March 24, 2010 as possible. With this new deal, the company split its existing deal into two tranches - one that still matures in 2010 and one that matures in 2012.

In connection with this amendment and extension, the company increased the revolver to a total size of $4.1 billion - $1.7 billion of which matures in 2010 and is priced at Libor plus 87.5 bps.

The company has the ability to increase the revolver by another $1 billion subsequent to March 2010 through an accordion feature.

Sears is a Hoffman Estates, Ill.-based retailer.

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