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Sears Holdings Announces Amendment, Extension and Size Increase of Revolving Credit Facility

    HOFFMAN ESTATES, Ill., April 8, 2011 /PRNewswire/ -- Sears Holdings
Corporation (NASDAQ: SHLD) ("we," "us," "our," or the "Company") announced
today that we have entered into an amendment to our domestic revolving
credit facility (the "Amended Agreement"). The Amended Agreement increases
the borrowing capacity of the facility to $3.275 billion from $2.441
billion and extends its maturity date to April 7, 2016 from June 12, 2012.

    The Amended Agreement also revises certain terms of the credit
facility. The amended facility's interest rates will vary based on leverage
in the range of LIBOR plus 2.0% to 2.5% (previously LIBOR plus 4.0% with a
1.75% LIBOR floor). Commitment fees have also been reduced to a range of
0.375% to 0.625% based on usage from the previous range of 0.75% to 1.00%.

    The credit facility continues to include a $1.5 billion sub-limit for
letters of credit, provides an accordion feature that allows us to use
existing collateral in the facility to obtain up to $1.0 billion of
capacity in addition to the $3.275 billion should we so choose, is secured
by a first lien on most of our domestic inventory and credit card and
pharmacy receivables, and determines availability pursuant to a borrowing
base formula.

    The transaction was led by BofA Merrill Lynch, Wells Fargo Capital
Finance LLC, and GE Capital Markets, as Joint Lead Arrangers and Joint Book
Runners, which collectively committed $1.2 billion, and was supported by
many other financial institutions. Bank of America, N.A. will serve as
Administrative Agent for the facility.

    About Sears Holdings Corporation

    Sears Holdings Corporation is the nation's fourth largest broadline
retailer with over 4,000 full-line and specialty retail stores in the
United States and Canada. Sears Holdings is the leading home appliance
retailer as well as a leader in tools, lawn and garden, consumer
electronics and automotive repair and maintenance. Sears Holdings is the
2011 ENERGY STAR? Retail Partner of the Year. Key proprietary brands
include Kenmore, Craftsman and DieHard, and a broad apparel offering,
including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer,
as well as the Apostrophe and Covington brands. It also has the Country
Living collection, which is offered by Sears and Kmart. We are the nation's
largest provider of home services, with more than 11 million service calls
made annually. Sears Holdings Corporation operates through its
subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation. For
more information, visit Sears Holdings' website at http://www.searsholdings.com.


SOURCE Sears Holdings Corporation



 

 


 

 
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CONTACT: Sears Holdings Public Relations, +1-847-286-8371