UPDATED — Sears Holding Corp.’s (Nasdaq: SHLD) will pay down its existing debt with a new $750 million term loan, the financially troubled retailer says. There are varying opinions on how the five-year loan will affect Sears’ liquidity situation, however.
Sears, headquartered in Hoffman Estates, Illinois, will use the proceeds from the proposed loan, due 2020, to reduce borrowings under its $3.275 billion asset-based revolving credit facility. The company says $1.304 billion of the revolver is scheduled to mature in April; the roughly $2 billion will mature in July 2020. The retailer’s debt load also includes an existing $980 million senior term loan, due to mature in 2018.