JPP acted as both administrative and collateral agent on an amendment to Sears Holdings’ second lien credit agreement.
According to the related 8-K filing, the amendment provides that interest on the $300 million principal amount term loan outstanding under the agreement may, at Sears’ option, be paid by increasing the principal amount of the second lien term loan.
The company’s obligations with respect to said loan may be converted into shares of common stock, par value $0.01, of the company at the option of the lenders at a conversion rate of 200 shares of common stock per $1,000 in principal amount of indebtedness outstanding under the second lien term loan.
The obligations are also mandatorily convertible into common stock at the option of the company at the term loan conversion price within 30 days following the end of any period of 30 consecutive trading days, ending on or after July 2, 2018, during which the volume weighted average trading price of common stock on the NASDAQ exceeds $10.00 for a period of 20 trading days.
