SEARS HOLDINGS CORPORATION (NASDAQ:SHLD) Files An 8-K Entry into a Material Definitive Agreement
Item1.01 Entry into a Material Definitive Agreement.
Item2.03 of this Current Report on Form 8-K is incorporated by
reference herein.
Item2.02 Results of Operations and Financial
Condition
On February10, 2017, Sears Holdings Corporation (the Company)
issued a press release providing an update on anticipated
financial results for the fourth quarter of 2016. A copy of the
press release is furnished as Exhibit 99.1 hereto and is
incorporated by reference in this Item2.02.
Item2.03 Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
On February10, 2017, the Company, Sears Roebuck Acceptance Corp.
(SRAC) and Kmart Corporation (together with SRAC, the ABL
Borrowers) entered into a second amendment (the Second Amendment)
to the Third Amended and Restated Credit Agreement, dated as of
July21, 2015 (as previously amended, the Credit Agreement), with
a syndicate of lenders, including Bank of America, N.A. (the
Bank), as agent.
The Second Amendment, among other things, modifies certain
reserve requirements and covenants under the Credit Agreement so
as to increase the Companys effective availability under the
revolving credit facility under the Credit Agreement (the
Revolving Credit Facility) by approximately $140 million relative
to the amount of availability reported at the end of the third
quarter of 2016. Simultaneously, the Second Amendment reduces the
aggregate nominal commitments under the Revolving Credit Facility
from $1.971 billion to $1.5 billion, increases the interest rate
on loans under the Revolving Credit Facility by 25 basis points
per annum (with the interest rate varying based on the Companys
consolidated leverage ratio) and increases the commitment fee on
undrawn amounts under the Revolving Credit Facility by 12.5 basis
points. The Second Amendment also increases the size of the
general debt basket under the Credit Agreement by $250 million to
$1 billion.
Item9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit99.1 | Press Release, dated February10, 2017 |
About SEARS HOLDINGS CORPORATION (NASDAQ:SHLD)
Sears Holdings Corporation is an integrated retailer. The Company is the parent company of Kmart Holding Corporation (Kmart) and Sears, Roebuck and Co. (Sears). It operates through two segments: Kmart and Sears Domestic. It operates approximately 940 Kmart stores across over 50 states, Guam, Puerto Rico and the United States Virgin Islands. Kmart stores carry an array of products across various merchandise categories, including seasonal merchandise, toys, lawn and garden equipment, food and consumables and apparel, including products sold under labels, such as Jaclyn Smith, Joe Boxer and Alphaline and certain Sears brand products (such as Kenmore, Craftsman and DieHard) and services. Its Sears Domestic segment’s operations consist of full-line stores, specialty stores, commercial sales and home services. Full-line stores offer an array of products and service offerings across various merchandise categories, including appliances, consumer electronics/connected solutions and tools. SEARS HOLDINGS CORPORATION (NASDAQ:SHLD) Recent Trading Information
SEARS HOLDINGS CORPORATION (NASDAQ:SHLD) closed its last trading session 00.00 at 5.54 with 1,725,875 shares trading hands.
