Sears to extend maturity date on term loan, plans on new credit facility

Sears Holdings Corp. said late Tuesday it has agreed to extend the maturity of an existing term loan originally maturing June 2018 to January 2019, with an option to further extend the maturity to July of that year. Sears paid down the term loan by $325 million in the fourth quarter, reducing the outstanding balance to about $400 million and bringing the total term loan repayment in 2017 to about $570 million, the company said in a statement. Sears also said it plans to get a new security credit facility, intending to use the proceeds to fund the payment of about $407 million in the Sears pension plans and for general purposes. Sears has "taken further action to provide the company with additional financial flexibility as we enter 2018," Chief Financial Officer Rob Riecker said. Sears continues to "explore alternatives" around debt maturities to reduce cash interest payments and get more flexibility, he said. Shares of Sears rose 4.8% in the late session after ending the regular trading day down 5.9%.

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