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The ABL Advisor Deal Tables
SELECTED TRANSACTION DETAILS
Sears Secures Additional $100MM Financing from CEO's Hedge Fund
Tuesday, October 10, 2017
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Lenders/Participants
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JPP, LLC [Lender]
JPP II, LLC [Lender]
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Structure
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$100MM Credit Facility Upsize
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Amount
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$499.400
Million
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Borrower(s)
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Sears Holding Corporation
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Description
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On October 4, 2017, Sears Holdings Corporation (the “Company”), through Sears, Roebuck and Co., Kmart Stores of Illinois LLC, Kmart of Washington LLC, Kmart Corporation, SHC Desert Springs, LLC, Innovel Solutions, Inc., Sears Holdings Management Corporation, Maxserv, Inc. and Troy Coolidge No. 13, LLC (collectively, “Borrowers”), entities wholly-owned and controlled, directly or indirectly by the Company, entered into an Amended and Restated Loan Agreement (the “Amended and Restated Loan Agreement”), which amended and restated its Loan Agreement, dated as of January 3, 2017 (as amended), with JPP, LLC and JPP II, LLC (collectively, the “Lenders”). Pursuant to the Amended and Restated Loan Agreement, the Borrowers borrowed an additional $100 million (the “Initial Incremental Loan”) from the Lenders. After giving effect to the Initial Incremental Loan, the aggregate principal amount outstanding under the Amended and Restated Loan Agreement was $499.4 million. Mr. Edward S. Lampert, the Company’s Chief Executive Officer and Chairman, is the sole stockholder, chief executive officer and director of ESL Investments, Inc., which controls JPP, LLC and JPP II, LLC. Subject to the satisfaction of certain conditions, including pledging additional properties or other assets as collateral, up to an additional $100 million may be drawn by the Company prior to December 1, 2017 (the “Additional Incremental Loan”; and the Additional Incremental Loan, if any, together with the Initial Incremental Loan, the “Incremental Loans”). The Incremental Loans mature on April 3, 2018. The original loans under the Amended and Restated Loan Agreement continue to mature on July 20, 2020. The Company expects to use the proceeds of the Incremental Loans for general corporate purposes. The Incremental Loans will have an annual interest rate of 11%, with accrued interest payable monthly. No upfront or funding fees will be paid in connection with the Incremental Loans. As with the existing loans under the Amended and Restated Loan Agreement, the Initial Incremental Loan is guaranteed by the Company and is currently secured by a first priority lien on 61 real properties owned by the Borrowers.
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Industry
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Retail
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Location
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IL
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| Related Tags |
Sears Holding Corporation
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ABL Advisor
Deal Tables
2025
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