Sears Holdings Announces Pricing Of $750 Million Senior Secured Term Loan Facility
HOFFMAN ESTATES, Ill., March 18, 2016 /PRNewswire/ -- Sears Holdings Corporation (the "Company") (NASDAQ: SHLD) today announced that it has priced its previously announced $750 million Senior Secured Term Loan (the "Term Loan") under the Company's existing Third Amended and Restated Credit Agreement, dated as of July 21, 2015. When issued, the Term Loan will be priced at LIBOR plus 750 basis points, subject to a 1.00% LIBOR floor and will be sold with original issue discount at a price of 97. The Company expects to receive $720 million in net proceeds from the loan and to use the proceeds to reduce borrowings under its asset-based revolving credit facility. The Term Loan is expected to close on April 8, 2016, and is subject to customary closing conditions.
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 Term Loan and the expected terms and conditions thereof. 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 www.searsholdings.com.
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SOURCE Sears Holdings Corporation