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  
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