Daily News: November 8, 2016

BofA Agents $250MM Sears Hometown and Outlet Stores Facility


Sears Holding’s three operating subsidiaries — Sears Authorized Hometown Stores, Sears Home Appliance Showrooms and Sears Outlet Stores — entered into an amended and restated credit agreement with a syndicate of lenders, including Bank of America as administrative agent and collateral agent.

ACF Finco and Santander Bank served as co-documentation agents. Merrill Lynch, Pierce, Fenner & Smith and Capital One were joint lead arrangers and joint bookrunners.

The agreement provides for maximum borrowings of $250 million, with extended revolving credit commitments of $170 million and non-extended revolving credit commitments of $80 million.

The commitments will mature on the earlier of February 29, 2020 or six months prior to the expiration of certain contracts entered into with Sears Holdings in connection with the company’s separation from Sears Holdings in October 2012.

The non-extended commitments will mature on the earlier of October 11, 2017 or six months prior to the expiration of certain contracts entered into with Sears Holdings and its subsidiaries in connection with the company’s separation from Sears Holdings in October 2012.

The agreement is secured by a first lien security interest on substantially all the assets of the company and its subsidiaries.