Sears Holdings said certain of its units have entered into a $500 million committed secured loan facility maturing in July 2020.
$321 million was funded under the loan facility on Wednesday and up to an additional $179 million may be drawn by the borrowers in the future.
The loan facility is secured by mortgages on 46 real properties owned by the company’s subsidiaries and will be secured by additional real properties if the remaining $179 million loan commitment is drawn. The loan facility bears interest at a rate of 8% per annum and is guaranteed by the company.
Sears said the loan facility will provide the company with additional liquidity to fund its operations while it initiates a process to market and sell a portfolio of its real estate assets, the proceeds of which would primarily be used to repay outstanding indebtedness.