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Home>UPDATE: Sears is again borrowing from owner and CEO Eddie Lampert

UPDATE: Sears is again borrowing from owner and CEO Eddie Lampert

UPDATE: Sears is again borrowing from owner and CEO Eddie Lampert

10/06/2017

Sears Holdings Corp. (SHLD) is again borrowing from its owner and chief executive Eddie Lampert, according to a regulatory filing. The troubled department store chain is borrowing another $100 million from units of Lampert's hedge fund ESL Investments Inc. at an annual interest rate of 11%, bringing the total in its loan agreement to $499.4 million. Under the amended terms of the loan, Sears can borrow another up to $100 million by pledging additional properties or assets as collateral, said the filing. The company will use the proceeds of the new borrowing for general corporate purposes. Sears most active bonds, the $303 million of 6.625% notes due in October of 2018, were last trading at 91.55 cents on the dollar, according to MarketAxess. Shares were down 1% and have lost 23% in 2017, while the S&P 500 has gained 13%.

-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

10-05-17 1844ET

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