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Sears Canada Extends and Reduces Credit Facility

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 
law. 
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 
vpower@sears.ca 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/May2014/28/c7296.html 
CO: Sears Canada Inc.
ST: Ontario
NI: RET LOAN MNA  
-0- May/28/2014 21:00 GMT
 
 
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