Sears Holdings announced that it has provided notice to the administrative agent under the company’s existing second amended and restated credit agreement, dated as of April 8, 2011, that the company intends to obtain an incremental senior secured term loan facility of up to $1.0 billion.

Sears said, if consummated, the loan would be issued under the existing credit agreement, which currently provides for a $3.275 billion asset-based revolving credit facility.

According to an 8-K filing dated April 8, 2011, Bank of America acted as agent for a syndicate of lenders that provided a $3.275 billion asset-based revolver that included a $1.5 billion letter of credit sub-facility with an expiration date of April 8, 2016.

The company said it intends to use the net proceeds of the incremental term loan to reduce borrowings under the revolving facility. The loan is subject to obtaining lender commitments, as well as market and other conditions.

The term loan is expected to be secured by a first lien on the same collateral as the revolving facility, guaranteed by the same subsidiaries of the company that guarantee the revolving facility, to have a maturity date of June 2018 and to include other terms customary for similar term loans.