Sears Holdings‘ subsidiaries entered into a $500 million committed secured loan facility maturing in July 2020. On January 4, 2017, $321 million was funded under the facility, and up to an additional $179 million may be drawn by the borrowers in the future.

Entities affiliated with ESL Investments are the lenders under the loan facility. Edward S. Lampert, the company’s chief executive officer and chairman, controls ESL Investments. The terms of the loan facility were approved by the related party transactions subcommittee of the board of directors of the company, with advice from Centerview Partners and Weil Gotshal & Manges, the subcommittee’s outside financial and legal advisors.

The loan facility is secured by mortgages on 46 real properties owned by the company’s subsidiaries and will be secured by additional real properties if the remaining $179 million loan commitment is drawn. The loan facility bears interest at a rate of 8% per annum and is guaranteed by the company. The loan facility is intended to provide the company with additional liquidity to fund its operations while it initiates a process to market and sell a portfolio of its real estate assets, the proceeds of which would primarily be used to repay outstanding indebtedness.

“This loan facility will provide Sears Holdings with additional financial flexibility and support our operations as we meet all of our financial obligations,” said Jason M. Hollar, Sears Holdings’ chief financial officer.