TORONTO, May 28, 2014 /CNW/ - Sears Canada Inc. (TSX: SCC) announced today
that it has extended the term of its senior secured revolving credit facility
to May 2019 and has reduced the total credit limit from $800 million to $300
million. Currently, the revolving facility is undrawn.
"The existing facility has been undrawn, even for seasonal purposes, since
March of 2012," said Douglas C. Campbell, President and Chief Executive
Officer, Sears Canada Inc. "This amendment prudently right-sizes our credit
facility to reflect our current borrowing base and will also allow us to
reduce our financing costs by lowering our annual undrawn fees on the facility
by over 70%. Together with our existing cash flow and working capital, this
will provide us the flexibility we need to meet our long term goals."
Sears credit facility is held by a syndicate of lenders arranged and
administered by Wells Fargo Capital Finance, part of Wells Fargo & Company
(NYSE: WFC). The original maturity was September 10, 2015. The credit
facility is secured with a first lien on inventory and credit card receivables.
Although the Company believes that the forward-looking information presented
with respect to the credit facility is reasonable, such forward-looking
information involves known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking information, and undue reliance should not be
placed on such information. The forward-looking statements in this release
are made as of the date hereof. The Company does not undertake any obligation
to update publicly or to revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as required by
About Sears Canada
Sears Canada is a multi-channel retailer with a network that includes 176
corporate stores, 229 Hometown stores, over 1,400 catalogue and online
merchandise pick-up locations, 96 Sears Travel offices and a nationwide repair
and service network. The Company also publishes Canada's most extensive
general merchandise catalogue and offers shopping online at www.sears.ca.
SOURCE Sears Canada Inc.
Contact for Media: Vincent Power Sears Canada, Corporate Communications
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