Seritage gets $1.6 billion initial loan, $400 million incremental loan

By Wendy Van Sickle

Columbus, Ohio, July 31 – Seritage Growth Properties entered into an initially funded $1.6 billion term loan facility with Berkshire Hathaway Life Insurance Co. of Nebraska, according to a press release.

The term loan matures on July 31, 2023 and includes a committed $400 million incremental facility.

Funded amounts bear interest at 7%, while the incremental facility will bear interest at 1% until drawn.

The company used a portion of the proceeds from the initial funding to fully repay its outstanding mortgage loan and unsecured term loan.

Net proceeds from the initial funding, along with existing balance sheet cash and the release of cash reserves held by the previous lender as of June 30, provide the company with over $600 million of cash liquidity, in addition to the incremental funding facility.

“This new financing is a transformational step in the evolution of our company, which we started three years ago, and positions us to further accelerate our role as a leading retail and mixed-use developer across the country,” Benjamin Schall, president and chief executive officer, said in the release.

The real estate investment trust was formed by Hoffman Estates, Ill.-based Sears Holdings.

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