In a news release, Sears Holdings said it completed its separation of the Lands’ End business and received a $500 million dividend. Lands’ End also entered into a $175 million ABL and a $515 million term loan and indicated in a related 10-K filing that Bank of America was retained to assist in arranging a syndicate of institutional lenders to provide the facilities.
Sears Holdings announced its board approved the separation of its Lands’ End business. The company noted that Lands’ End will pursue a $690 million ABL facility that will be used to pay a dividend to a Sears Holdings subsidiary.
Sears Holdings announced that its subsidiaries have borrowed $1 billion under a new a senior secured term loan facility. According to an SEC filing, Bank of America served as agent.
Sear Holdings said it notified the agent under its existing ABL revolver that it intends to obtain a $1.0 billion incremental term loan to reduce borrowings under the revolver, which was provided by a syndicate of lenders led by Bank of America as agent.
The Wall Street Journal reported that Orchard Supply Hardware Stores has hired restructuring attorneys at DLA Piper and financial advisor FTI consulting as it readies for a term loan restructuring deadline of May 1, 2013.