Sears borrows even more money from CEO
Beleaguered Sears Holdings got another lifeline from its owner.
The department store chain received a new $40 million loan from its CEO, Eddie Lampert’s hedge fund ESL Investments. The loan is currently secured by 66 retail properties owned by Sears, according a Securities and Exchange regulatory document filed late Thursday.
This is the second loan the retailer has gotten this month. On Oct. 4, Sears borrowed $100 million from Lampert.
Under the terms of the updated agreement, the aggregate principal amount outstanding is now $524.1 million. Up to an additional $60 million may be drawn by the company prior to Nov. 17, the filing said.
Sears plans to use the proceeds of the Incremental Loans for general corporate purposes.
The filing outlined that the loans carry an annual interest rate of 11%, with accrued interest payable monthly. All loans will mature on May 17, and 181 days following the date on which an additional incremental loan is made. The remainder of the loans under the Second Amended and Restated Loan Agreement continue to mature on July 20, 2020.
The department store chain received a new $40 million loan from its CEO, Eddie Lampert’s hedge fund ESL Investments. The loan is currently secured by 66 retail properties owned by Sears, according a Securities and Exchange regulatory document filed late Thursday.
This is the second loan the retailer has gotten this month. On Oct. 4, Sears borrowed $100 million from Lampert.
Under the terms of the updated agreement, the aggregate principal amount outstanding is now $524.1 million. Up to an additional $60 million may be drawn by the company prior to Nov. 17, the filing said.
Sears plans to use the proceeds of the Incremental Loans for general corporate purposes.
The filing outlined that the loans carry an annual interest rate of 11%, with accrued interest payable monthly. All loans will mature on May 17, and 181 days following the date on which an additional incremental loan is made. The remainder of the loans under the Second Amended and Restated Loan Agreement continue to mature on July 20, 2020.