Sears Hometown units complete amended, restated $250 million revolver

By Wendy Van Sickle

Columbus, Ohio, Nov. 7 – Sears Hometown and Outlet Stores, Inc.’s three operating subsidiaries, Sears Authorized Hometown Stores, LLC, Sears Home Appliance Showrooms, LLC and Sears Outlet Stores, LLC, entered into a $250 million amended and restated revolving credit agreement on Nov. 1, according to an 8-K filing with the Securities and Exchange Commission.

A $170 million extended tranche expires on the earlier of Feb. 29, 2020 and six months prior to the expiration of certain contracts entered into with Sears Holding Corp, in October 2012.

The remaining $80 million expires on the earlier of Oct. 11, 2017 and six months prior to the expiration of the contracts.

Borrowings bear interest at Libor plus a margin ranging from 350 basis points to 450 bps for the extended tranche and from 250 bps to 350 bps for the non-extended tranche, in each case depending on availability.

Bank of American Merrill Lynch and Capital One, NA are the joint lead arrangers and bookrunners, AFC Finco I LP and Santander Bank, NA the co-documentation agents and Bank of America, NA the administrative agent.

The credit agreement is secured by a first-lien security interest on substantially all the assets of the company and its subsidiaries.

If excess availability falls below a certain level, the company is required to comply with a minimum fixed charge coverage ratio.

The retailer is based in Hoffman Estates, Ill.

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