Sears talks $750 million incremental term loan at Libor plus 800 bps

By Sara Rosenberg

New York, March 4 – Sears Holdings Corp. launched on Friday its $750 million incremental senior secured term loan due July 2020 with price talk of Libor plus 800 basis points with a 1% Libor floor and an original issue discount of 96 to 97, according to a market source.

The term loan has hard call protection of 102 in year one and 101 in year two, the source said.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead banks on the deal.

Commitments are due on March 16, the source added.

Proceeds will be used to reduce borrowings under the company’s asset-based revolving credit facility.

The incremental term loan is expected to be secured by a first-lien on the same collateral as the revolver and an existing term loan.

Completion of the incremental term loan is subject to obtaining lender commitments, as well as market and other conditions.

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

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