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Sears Holdings obtains $500 million loan — with some help from Eddie Lampert


Sears Holdings Corp. announced it obtained a 15-month $500 million secured loan facility. ESL Investments, the company controlled by Sears chairman and CEO Edward Lampert, helped provide part of the loan and is entitled to related fees.

Sears said $250 million of the 15-month loan was funded on Friday with the remainder being accessible in the future.

The new loan comes as the retailer has been reducing its store footprint as part of its turnaround effort. Sears said the new facility, combined with its previously announced $750 million term load, will provide it “with additional financial flexibility as it executes on its transformation to a more asset-light integrated retailer leveraging its membership based Shop Your Way program.”

"We have an asset rich portfolio which provides us with numerous options to finance our transformation strategy," said Robert A. Schriesheim, executive VP and CFO for Sears Holdings. "The expected closing today of the previously announced $750 million Term Loan, together with this $500 million facility, provides $1.25 billion of committed financing. When considered together with our previously announced intention to monetize at least $300 million of assets, this set of actions would result in an aggregate of $1.5 billion of enhanced liquidity. As we have consistently demonstrated, we will continue to take actions to adjust our capital structure and manage our business to enable us to execute on our transformation while meeting all of our financial obligations."

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