Daily News: April 20, 2017

GACP, KKR Arrange $222MM Term Loan for Sears Canada


Great American Capital Partners (GACP) and KKR Capital Markets entered into an agreement with Sears Canada to provide a C$300 million ($222 million) senior secured term loan. The first tranche of C$125 million ($930,000) was drawn at closing and the second delayed draw tranche is up to C$175 million ($130 million). Proceeds from the loan will be used for general corporate purposes. GACP is a wholly owned subsidiary of B. Riley Financial.

Sears Canada operates more than 200 stores under five different banners, including Full-line Stores, Outlet Stores, Home Stores, Hometown Stores and Corbeil Stores. The Toronto-based department store chain sells apparel, appliances, home décor products and various other goods.

“GACP is pleased to work with Sears Canada and provide it the capital to achieve its operating plan,” said Robert Louzan, managing director of GACP. “This transaction is another example of GACP’s ability to provide creative solutions to the challenging retail environment.”

“Sears Canada is a longstanding brand with a household name. We are pleased to support the company’s reinvention and its focus on offering Canadian consumers a variety of shopping options to meet their needs,” said George Mueller, director of KKR Credit Advisors.

“We are pleased to have the support of GACP and KKR as joint lead arrangers,” said Brandon G. Stranzl, executive chairman of Sears Canada. “Sears Canada’s reinvention is well underway and we look forward to sharing our progress on new initiatives with Canadians as we move through 2017.”