Sears Holding Corp., the unprofitable retailer controlled by Edward Lampert, plans to borrow as much as $1 billion to refinance existing debt.
The term loan will replace part of the company’s existing $3.275 billion asset-based credit line, according to a statement posted on its website. The company said it expects the loan to be secured by the same collateral as the revolving credit facility and mature in June 2018.
The revolver, a type of debt where money repaid can be borrowed again, is due to mature in April 2016 and the Hoffman Estates, Illinois-based company has drawn about $2.2 billion of the facility, according to data compiled by Bloomberg.
Sears last month posted a $194 million second-quarter loss and the 26th consecutive quarter of sales declines as loyalty program members used more discounts and appliance sales fell.