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Sears agrees US$100mln of new financing

Last updated: 08:35 10 Jan 2018 EST, First published: 03:35 10 Jan 2018 EST

sears building
A further US$200mln is being sought by the retailer

Sears Holdings Corporation (NASDAQ:SHLD) has banked US$100mln of new financing, and told investors it is seeking a further US$200mln from ‘other counterparties’.

The company has also made amendments to its lien financing arrangements, whilst auctioning a programme of cost reductions (excluding savings from store closing).

READ: Sears sells further 140 stores to fund pension plan as it reports third quarter loss

“As previously announced, we are actively pursuing transactions to adjust our capital structure in order to generate liquidity and increase our financial flexibility,” said Rob Riecker, Sears chief financial officer.

“The new capital we have secured represents meaningful progress towards those objectives and demonstrates that we continue to have options to finance our business."

Edward Lampert, chief executive, meanwhile, added: "We made significant progress in 2017 through our efforts to reset our cost base and enhance our liquidity, as well as our recently announced agreement with the PBGC to pre-fund our contributions to our pension plan for the next two years.

“The initiatives we have announced today build on those achievements and make clear our determination to remain a viable competitor in the challenging retail environment.”

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