Fitch rates Sears notes BB+

Fitch Ratings said it assigned a BB+ rating to the $665 million senior secured notes due 2018 that is being offered by Sears Holdings Corp.

The company said that $165 million is being offered to Sears Holdings' domestic pension plan through a private placement.

The notes being offered have a second-lien on all domestic inventory and credit card receivables, essentially representing the same collateral package that backs the $2.4 billion credit facility on a first-lien basis, the agency added.

The company plans to use proceeds to repay borrowings under its senior secured revolving credit facility, fund working capital requirements and capital expenditures, and for general corporate purposes, including common share repurchases and pension funding obligations, Fitch added.

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