Sears raises credit facility capacity to $3.275 billion
Hoffman Estates, Ill. -- Sears Holdings Corp. said Friday that it increased the borrowing amount on its domestic revolving credit facility to $3.275 billion from $2.441 billion.
According to a report by the Associated Press, the maturity date is also extended from June 12, 2012 out to April 7, 2016. The facility also has a lower interest rates and the fee the lender charges Sears for holding available credit was reduced.
The credit facility retains its accordion feature that allows Sears to use existing collateral to get up to $1 billion more in borrowing capacity. The facility is backed by the retailer's domestic inventory and money it is owed from its pharmacy and credit-card division.