Sears Holdings Corporation Announces Intention To Obtain Senior Secured Term Loan Facility

HOFFMAN ESTATES, Ill., March 3, 2016 /PRNewswire/ -- Sears Holdings Corporation ("Holdings," "we," "us," "our," or the "Company") (Nasdaq: SHLD) today announced that it has provided notice to the administrative agent under the Company's existing Third Amended and Restated Credit Agreement, dated as of July 21, 2015 (the "Existing Credit Agreement"), that the Company intends to obtain a new senior secured term loan facility of up to $750 million (the "Incremental Term Loan").  If consummated, the Incremental Term Loan would be issued under the Existing Credit Agreement, which currently provides for an existing senior secured term loan in the amount of $980 million maturing in June 2018 and a $3.275 billion asset-based revolving credit facility (the "Revolving Facility"), with $1.304 billion of such Revolving Facility commitments maturing in April 2016 and the balance maturing in July 2020.  The Company intends to use the net proceeds of the Incremental Term Loan to reduce borrowings under the Revolving Facility.  Completion of the Incremental Term Loan is subject to obtaining lender commitments, as well as market and other conditions.

The Incremental Term Loan is expected to be secured by a first lien on the same collateral as the Revolving Facility and the existing term loan, guaranteed by the same subsidiaries of the Company that guarantee the Revolving Facility and the existing term loan, to have a maturity date of July 2020 and to include other terms customary for similar term loans.

Forward-Looking Statements

This press release contains forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements about our intention to obtain the Incremental Term Loan. Forward-looking statements are subject to risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. Factors that could cause actual results to differ from those set forth in the forward-looking statements include, but are not limited to, those discussed in this release and those discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. We intend the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available, except as required by law.

About Sears Holdings Corporation

Sears Holdings Corporation (NASDAQ: SHLD) is a leading integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve our members - wherever, whenever and however they want to shop. Sears Holdings is home to Shop Your Way®, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners across categories important to them. The Company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with full-line and specialty retail stores across the United States. For more information, visit

Sears Holdings Public Relations
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SOURCE Sears Holdings Corporation

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