SEARS SECURES ADDITIONAL $500 MILLION LOAN

Sears Holdings Corporation and its subsidiaries have entered into $500 million committed secured loan maturing in July 2017. Together with the previously announced $750 million term loan, these funds will provide the company with additional financial flexibility as it executes on its transformation to a lighter asset retailer.

This new loan, which bears an interest rate of 8 percent, is secured by mortgages on 13 real properties owned by the company’s subsidiaries and will be secured by an additional eight real properties beginning on the date any additional amounts are drawn.

Under the terms of the loan, the company is required to retain a broker and use commercially reasonable efforts to syndicate the loan. Eastdil Secured has been enlisted by the company to manage the syndication.

“We have an asset rich portfolio which provides us with numerous options to finance our transformation strategy,” said Robert A. Schriesheim, EVP and CFO for Sears Holdings. “The expected closing today of the previously announced $750 million term loan, together with this $500 million facility, provides $1.25 billion of committed financing. When considered together with our previously announced intention to monetize at least $300 million of assets, this set of actions would result in an aggregate of $1.5 billion of enhanced liquidity. As we have consistently demonstrated, we will continue to take actions to adjust our capital structure and manage our business to enable us to execute on our transformation while meeting all of our financial obligations.”